Paying your insurance premium is very important. Of course, paying all your bills is important, but when it comes time for your insurance premium to be due you will want to take extra care to not miss it or be late at all. There are unfortunate consequences that could happen if you don’t pay on time which may take longer to rectify than you might think.
Unlike other companies that bill you, your insurance carrier is required to follow a stricter payment process. While your credit card company, mortgage lender or car financial center may give you a grace period to pay your bill after its due date, insurance carriers are less than likely to offer any additional time for you to get your payment in. That means you can be canceled for non-payment immediately. Having your policy reinstated can also be tricky.
If your policy is canceled for non-payment of premium, that notification will stay on your insurance history for three years. Trying to find insurance with a non-payment cancellation on your record can result in coverage at a higher cost. Companies are not as willing to offer the best rates to clients who have a history of not paying their premium on time.
If you do not think you will be able to make your next premium payment, give us a call before it is due. We can figure out a way to make your premium payment more affordable by checking your coverage and billing schedule. We may be able to find some hidden discounts or credits that could have been overlooked previously. We can also offer competitive quotes from other carriers to see if you could possibly switch carriers and save some money. Just don’t let your coverage lapse due to non-payment or you could be looking at a lot more trouble than it’s worth.