What should I do if my car insurance gets cancelled for nonpayment? There are so many reasons why your car insurance can be cancelled, one of which is late payment.
Depending on your insurance company and the type of policy you have, there may be a grace period for you. This grace period allows you to still enjoy your coverage even after you miss a payment.
Nevertheless, if your car insurance gets cancelled, there are ways to go about it. If you are late on payment for just a few days, your insurance provider may allow you to reinstate your policy. But if it is for a long period of time, then you need to apply for another auto insurance policy.
What to Do Before Missing a Car Insurance Payment
We often advise people to reach out to their insurance company as soon as they notice they will be late on payment. This is because some insurance companies may offer grace periods that guarantee peace of mind and continuous coverage. Once you realize you are likely to miss your car insurance payment, let your insurer know immediately.
If your car insurance payment is not due and you realize you won’t be able to meet up with the payment, you can ask your insurer to extend the payment date.
On the other hand, if your payment was due and you’ve missed it for a couple of days, it is possible to reinstate your policy. Owing to the fact that you are still within the grace period, you may likely not face a penalty or lapse in coverage. But note that you still have to pay the premium you missed, and this often comes with a late payment fee.
What to Do If Car Insurance Is Cancelled for Nonpayment
There are so many situations that humans are unable to control, one of which is handling finances. If you miss a car insurance payment due to some reason, reach out to your insurer to learn about the options available to you.
For late payments, your insurance provider will send a cancellation notice via mail, email, or phone call. Most times, policyholders have 15 to 20 days between the date of the notice and the date the coverage ends. Please note that this timeframe differs by insurance companies and the state you reside in.
Since it is illegal to drive without standard insurance, the next thing to do if your car insurance gets cancelled for nonpayment is to apply for a new policy. Once you have activated your policy after making the payment, you should update your insurance details and ensure your coverage is still intact.
How to Avoid A Missed Car Insurance Payment
The consequences attached to missing a car insurance payment go beyond just a lapse in coverage. Your policy may likely be cancelled if you don’t take the right step. Peradventure, you have missed several car insurance payments in the previous year; here are a few tips on how to avoid non-payment issues:
- Sign Up For Autopay: This is an effective strategy and the easiest way to avoid missed payments on your car insurance. During the initial stage of purchasing your car insurance, enroll in AuotPay so that your premiums can be deducted automatically from your bank account.
- Set Reminders: If you are the type that engages in a lot of tasks, managing your insurance payment can be somewhat difficult. To help ease stress and avoid potential penalties, set reminders on your calendar or phone. This will prompt you when the next payment is due.
- Shop Around for Cheaper Rates: The truth is, once your car insurance gets cancelled, the chances of getting it back are very slim. The next option is to shop for cheaper coverage that suits your budget. To find an affordable car insurance company, do your research, compare quotes, coverage options, the price of the policy, and the reputation of the provider.
- Ask for a Grace Period: Some insurance companies feature grace periods in their auto insurance policies. So, you can reach out to your insurance provider to ask if there’s a grace period that covers you if you miss your car insurance payment.
FAQs
What happens if I pay my auto insurance payment late?
We advise policyholders to make their premium payments as soon as possible in order to avoid late fee payments, lapses in coverage, or policy cancellation.
If you are going to be late on your insurance payment, the best thing to do is to reach out to your insurance company and let them know of your situation.
How long is the grace period if I miss my premium payment?
The length of the grace period for missing an insurance payment is different across several insurance companies. Nevertheless, the average grace period is between 10 to 30 days. Some insurance providers offer grace periods up to 90 days, making it easier for policyholders to pay within the timeframe.
To know the grace period offered by your insurance company, you can reach out to them or check your policy documents for detailed information.
Can grace period be extended?
Well, it depends. Some insurance companies may agree to extend the grace period if you have been working with them for a long time and you pay your premiums on time. But the reverse may be the case if you default and are not consistent with your premium payment.
Is it possible to reinstate cancelled car insurance?
It may be possible to reinstate your cancelled policy if the lapses are just for a few days. But if not, you will need to get a new auto insurance policy. To get the best rate for auto insurance, we encourage you to shop around and compare quotes. This would enable you to weigh your options and settle for the one that aligns with your budget and unique needs.
