There’s a lot to stay on top of when maintaining your insurance policy. You probably already know the importance of paying attention to policy dates, so that you don’t accidentally let it expire, but what about making those payments on time? Did you know that there are consequences to missed insurance payments that could endanger your policy? Here’s what you’ll need to know about staying up to date and on top of your payments.
It Might Start With A Warning
Not every insurance company is out to ding you straight away, and some might be lenient — at first. You may have a bit of a grace period to get things paid, and in some cases, they might even send you a friendly reminder to get that money to them ASAP. Skirt the line too frequently, though, and those warnings may get a little less friendly. Neglect a payment altogether, and then you might be in for more serious consequences.
You Could Get Your Policy Canceled
Let’s say you were a little late on a payment, but you were able to get things square with your insurance company after getting them the money for the payment plus a bit extra for a late fee. If this happens once or twice, you may well find things going back to normal as long as you’re timely with future payments.
If you’re habitually late, however, or just skip out on paying entirely, then your insurance company may decide it’s time to cancel your policy. In this case, they’ll have deemed you such a high risk that they don’t even want to deal with you any more. This is in spite of the fact that insurance companies normally want to keep as many people as possible so that they can make a profit. This also sets you up for further financial failure come the future.
Your Rates Might Go Up From Now On
Once the insurance company cancels your policy and there’s a history of non-payment on your record, you won’t just find it harder to obtain insurance again in the future. Whatever policies you do find will likely have higher-than-normal rates, because insurers view you as a risky option. If you aren’t able to obtain insurance at a reasonable price, then you’ll be stuck without coverage for a significant period of time, during which it will be illegal for you to drive as well. You can see how this can snowball into even greater problems, so it’s best to avoid all the hassle and make sure you stay on top of your payments.