Life happens, oversights can occur, and payments sometimes get missed. If you missed a car insurance payment, don’t panic. Your policy will not be cancelled immediately. State laws require auto insurance companies to provide notice to policyholders before cancelling their coverage for nonpayment.
Most car insurance companies offer a grace period for late payments. If you submit your payment a few days late, it should not be a major problem. However, the grace period can vary from one provider to another. It is important to make your payment as soon as possible after you discover the oversight.
If the grace period has passed and your payment has still not been received, your insurance company will notify you by mail or by email before cancelling your policy. Generally, you will have between 10 and 20 days to rectify the situation by bringing your payments up to date. If you receive a notice of cancellation, contact your insurance company to find out if your auto insurance policy is still in effect.
If your policy has already been canceled, find out from your insurance company if you can renew it. Reinstating the same policy that was just cancelled for nonpayment will allow you to maintain continuous coverage without a lapse. To reinstate your previous policy, you will need to pay the past due balance to your insurer.
You will need to purchase a new auto insurance policy as soon as possible if the insurance company will not reinstate your previous coverage. This may be more expensive, but it is nevertheless necessary. Without the minimum coverage, you cannot legally drive your vehicle.
Drivers are required to carry mandatory minimum auto insurance coverage in nearly every state in the U.S. If your car insurance lapses for nonpayment or any other reason, there may be financial and legal consequences, including:
If you need auto insurance, contact our agency today. We can help you find the best quote in the area for the coverage you need.
