If you miss the deadline for paying your car insurance bill, you might not like the results. The insurance company you are using for your car insurance could cancel your policy if you miss a payment. While they may give you a grace period, they will eventually cancel the policy if you do not pay the bill by the end of this period, and if this happens, you will need to search for a new auto insurance company.
Why missing a payment is never a good idea
Missing a payment for your car insurance could leave you in a vulnerable place and in a high-risk category for insurance rates. When you miss a payment and get canceled by your insurance agency, you will now have a lapse in your coverage. A lapse is viewed by insurance companies as a high-risk, and this will leave you in a category of a high-risk driver, even if you have never had a claim or ticket in the past.
Options you could consider if this happens
There are several options you could consider if your company cancels your insurance policy. The first option is to call them and ask them if they would be willing to reinstate the policy. If this is your first missed payment and first cancellation, they might be understanding with you and willing to insure you once again. The other option you have is to look for a new company to purchase insurance from.
Challenges you might face when finding a new company
It is also important to understand that you may face some challenges getting car insurance after your policy is canceled for non-payment. Any company you request a policy from will be able to know that you were canceled by your last company and that you have a lapse in your coverage. Because this makes you a high-risk policyholder, insurance companies might be leery of offering you insurance. To improve your chances of finding a company that will insure you, you may want to offer to pay for six months of coverage in advance or get set up on automatic payments so that you can prove you will not miss a payment.
Once you get a new insurance policy in place, it is very important for you to make all the payments on time to prevent this from happening again. To request a quote, call an auto insurance agent of your choice.