Information about car, auto, motor and lorry insurance
Be very careful with late car insurance payment : depending on your policy your insurance company may cancel your policy even if you are only 1 day late with your payment. And the company won't necessarily reinstate you once it gets your money. Furthermore, once your policy has been canceled, you may find yourself paying more money for a comparable policy or — worse yet — having trouble finding insurance at all! Can they do that? Each state has rules governing when an insurance company may drop your policy. An insurance company will almost always be able to cancel your policy in the middle of its term — as opposed to non-renewing it when the policy's up — if you fail to make a payment on time. Furthermore, on-time payment usually means your premium must be received by the due date. Dropping the payment in the mail by the due date isn't good enough.
Most auto insurers value your business and won't drop you if you're a few days late. Some companies, however, may seize that opportunity to kick you off their rolls if you're habitually late with payments or if they decide that you're a risk they no longer wish to insure. If you've passed the cancellation date, an insurer may require that you pay the remaining balance due for the full term before they reinstate your insurance. (source: www.insure.com)
No grace period for insurance
Many drivers mistakenly believe that there is a grace period for paying car insurance premiums. While many health and life insurance policies afford a grace period of 30 days — and state law sometimes mandates those grace periods — auto insurance usually doesn't work that way. If you're late in paying your auto policy premium, you're at the mercy of your insurance company. State insurance laws will, however, prescribe the number of days' notice that you're entitled to before the cancellation takes effect. But that's little consolation when you're on the verge of losing insurance.
If you've gotten away with paying your auto insurance a few days late in the past, don't count on your auto insurer being understanding forever. In many cases, the person canceled will complain to the state insurance department, arguing that the insurer always accepted late payments in the past. Although state insurance regulators are able to resolve many complaints, they may not be able to help someone who fails to pay premiums in a timely ma
Late Car Insurance Payment
GRACE PERIOD period after the date the premium is due during which the premium can be paid with no interest charged, the policy remaining in force. This period is for 30 or 31 days. If the insured dies during this period, the beneficiary would receive the full face amount of the policy minus the premium owed. Thus the use of the grace period allows the financial technique of leveraging. (source: dictionary of Insurance Terms)
Many drivers mistakenly believe that there is a grace period for paying car insurance premiums. While many health and life insurance policies afford a grace period of 30 days — and state law sometimes mandates those grace periods — auto insurance normally doesn't work that way. If you are late in paying your period auto policy premium, you are at the mercy of your insurance company. State insurance laws will prescribe the number of days' notice that you are entitled to before the cancellation takes effect. But that is little consolation when you're on the verge of losing insurance.
If you have paid your auto insurance a few days late in the past, do not count on your auto insurer being understanding again. I Although state insurance regulators are able to resolve many complaints, they may not be able to help someone who fails to pay premiums in a timely manner.
What you need to know about Late Car Insurance Payment
