What happens if you are late making auto insurance payment? While the rules vary from state to state and by provider, it is safe to say that paying your insurance premium on time should be a priority.
This page will go over what common consequences for nonpayment of premium.
Car Insurance Payments: How Late Is Too Late?
While there are many car insurance companies who won’t cancel your policy after one or two days, most often they will have the right to. You may get a notice that tells you your payment is late and will be canceled on a specific date if payment is not received.
If your auto insurance provider does elect to cancel your policy right away – for example due to a history of late payments – don’t count on them reinstating the policy once the premium is received. You may find yourself looking for a new car insurance company.
You may also face higher premiums in the future, as insurance companies base your rates on perceived responsibility and risk. Making late payments signals to your car insurance provider that you present increased risk to the company.
What About Grace Periods?
Whether to offer a grace period is up to the provider, but in most states, car insurance companies are under no obligation to extend extra time for payment of the premium.
If you are afforded a grace period, you will likely pay for it in late fees, effectively raising the overall cost of your policy. It is better to assume there is no grace period and pay by the due date.
Get Central Oregon Car Insurance
For affordable Central Oregon Car Insurance contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online.