Consequences of Late Insurance Payments

Did you realize that it could cost you more than a late fee when you make your insurance payments late? That's right, not only will you incur a late fee in most cases but also you are jeopardizing your current coverage and possibly your future rates.

Let's consider what is probably the worst-case consequence of making late insurance payments. If you cut it too close and send your payment too late, you may not even realize that your insurance policy was cancelled. Now you are driving around with no insurance coverage.

Receipt of your payment by the company does not necessarily constitute reinstatement of your policy. You think you're covered because you mailed the payment but that may not be the case. When the insurance company receives your payment after your policy was cancelled they may return it to you in the mail. In some cases, they may keep it and apply it to any balance you may still owe. You really have no idea what the status of your policy is but are assuming it's okay because you haven't received any notices yet and no phone call from the company or your local agent.

Now you have an accident and assume everything is okay because you mailed your payment. You're thinking "I'm covered" but in essence you are not; you just don't know it yet. You find out when you contact the insurance company to let them know about your accident and they inform you that you do not have any coverage. You insist that you do because you mailed your payment. They tell you that it was too late and that your money is being sent back as you speak.

Being involved in an auto accident without insurance coverage is not a good thing. You can loose your license even if it was not your fault. Many states have financial responsibility rules that apply to auto accident and can affect your driving privileges regardless of who is considered to be at fault.

Another consequence to consider is the fact that your insurance company may find that after reviewing your payment history that they no longer wish to insure you. They may issue a 'non-renewal' notice. This means that they are no longer willing to insure you when your policy expires. You will have to get an insurance policy from another carrier.

It is also possible that your insurance company would be willing to renew your policy but require that you pay in full for the entire term; not giving you the opportunity to make late payments. If you are unable to pay in full for the policy term you may decide to shop for a new policy; however you may find that other insurance carriers could also require that you pay in full.

Consider that you may also damage your insurance credit based score. Many insurance companies review your credit and prior insurance history when determining what rates to charge you. Having made previous late payments on your insurance policy could cost you extra dollars when you buy a new policy. You might have ordinarily qualified for better rates but because you made late payments on your previous policy your new one is going to be surcharged.

Contact your agent or the insurance company if you cannot make your payment on time. They will be able to provide you with information regarding any late fees or cancellation date. They may also be able to provide advice or propose an alternative solution.

Visit http://www.carinsurance.com for Automobile Insurance Quotes

Jason Horowitz is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online... anytime!

---

Auto Insurance In Texas

If you are looking for auto insurance in texas, you... Read More

Types of Life Insurance

There are different types of life insurance policies available. Shop... Read More

Used Car Insurance

Every state requires that drivers carry liability insurance. The liability... Read More

Why Boats Are A Pleasure... But You Still Need Boat Insurance

One of the greatest pleasures that a man can have... Read More

Origin Of Long Term Care Insurance

In the early 1980's Medicare started using a system called... Read More

Cut Business Insurance in 8 ways

1. Comply with recommendations from company engineers and loss control.... Read More

What Answers To Questions For A Home Insurance Price Quote Will I Need To Know?

Lets face it, finding the best home insurance price quote... Read More

What is Travel Insurance?

Travel Insurance is designed to protect your health, belongings, and... Read More

Is an HSA a Type of Insurance?

A Health Savings Account (HSA) is not a type of... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

High Deductible Health Insurance Plans For Individuals and Families

Do you pay more attention to your car than your... Read More

The Great Value Of Accident Photographs

You were humming along on a bright and sunny day... Read More

Which Car Should You Own To Keep Your Insurance Rates Most Affordable?

Do you consider the cost of insurance before you buy... Read More

What is Pet Health Insurance?

Pet Health Insurance can give you the peace of mind... Read More

House Insurance - Forcible and Violent Entry

Forcible and violent entry (f&ve) is the terminology used within... Read More

A Life Insurance Quote Became Reality

Life insurance quoteThank goodness John took his life insurance quote... Read More

Talking to Your Parents About Insurance

Who can you talk to about auto insurance? Insurance agents... Read More

Insure Your House

When we talk about insurance the thing you have to... Read More

California Catering Truck Insurance

Catering truck insuranceNot many agents/brokers write catering truck insurance as... Read More

Life Insurance No Medical Exam - Is It Really Possible?

Quite often you feel that an ad for life insurance... Read More

How Do I Lower My Auto Insurance Premiums?

It seems as though the price of everything is on... Read More

Life Insurance Leads, Insurance Leads, and the Online Lead Generation Business

I've long wanted to write an article about Internet Leads... Read More

5 Strategies To Reduce Your Car Insurance Premiums

Your latest car insurance bill has arrived and it is... Read More

Filing Homeowners Insurance Claim Forms: What Steps to Take

Filing a homeowners insurance claim can be done with ease... Read More

Finding Fast Life Insurance

Since the widespread growth of internet usage and database building... Read More

7 Tips Toward Helping You Reduce Your Insurance Costs

Not a year goes by that insurance rates go up.... Read More

Insurance Credit Scoring: An Ethical Issue

The issue at hand is the use of a consumer's... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance... Read More

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates,... Read More

How Do I Calculate How Much Life Insurance I Need?

Life insurance protects you and your family from economic hardship... Read More

Disability Income Insurance Can Meet All Your Financial Needs

Disability income insurance can cover you in the event of... Read More