You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the technical advice and tools needed to succeed throughout animation ’ s fiscal journey. Bankrate ’ s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make chic personal finance decisions. We follow rigid guidelines to ensure that our editorial message is not influenced by advertisers. Our editorial team receives no direct recompense from advertisers, and our contentedness is thoroughly fact-checked to ensure accuracy. indeed, whether you ’ re reading an article or a inspection, you can trust that you ’ re getting credible and reliable information. We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in plaza to ensure that happens. Our editors and reporters thoroughly fact-check editorial contentedness to ensure the information you ’ re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive target compensation from our advertisers. Bankrate follows a rigorous editorial policy, so you can trust that we ’ re putting your interests first. Our award-winning editors and reporters create honest and accurate contented to help you make the right fiscal decisions. All providers discussed on our web site are vetted based on the value they provide. And we constantly review our criteria to ensure we ’ ra putting accuracy beginning. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — therefore you can feel convinced about which provider is right for you. Bankrate follows a nonindulgent column policy, so you can trust that we ’ ra putting your interests first. All of our content is authored by highly qualified professionals and reviewed by discipline matter experts, who ensure everything we publish is objective, accurate and worthy of your trust. Founded in 1976, Bankrate has a farseeing track record of helping people make fresh fiscal choices. We ’ ve maintained this reputation for over four decades by demystifying the fiscal decision-making process and giving people confidence in which actions to take following. While we adhere to strict column integrity, this mail may contain references to products from our partners. here ‘s an explanation for how we make money. This subject is powered by HomeInsurance.com ( NPN : 8781838 ). For more information, please see our Insurance disclosure. many policyholders pay their car policy premium on a monthly footing. But sometimes, you might miss a payment due to forgetfulness or because you can not afford it. So what happens when your car insurance is canceled for non-payment ? The unretentive solution is, it depends on the circumstances. Missing a car indemnity payment can be no adult batch, but it can besides lead to your policy getting canceled. And when you do not have car indemnity coverage, you are not legally allowed to drive and you could receive fines from your state and lienholder. fortunately, there are ways to avoid missing car insurance payments, so you do not end up with a cancel policy .
What to do if you cannot afford your next payment
If your budget is mean, you might know ahead of time that you will not be able to pay your adjacent month ’ mho car indemnity premium. In this case, you should contact your car insurance company arsenic soon as possible. Every insurance company has different policies, but you might be able to request a different requital deadline, possibly closer to your payday. It is besides potential that your policy supplier would let you defer that calendar month ’ sulfur payment, which means you would pay it by and by.
If your insurance policy is set to autopay, you may be able to delay the payment by signing into your on-line customer portal vein or the insurance company ’ s fluid application. If you can let your indemnity company know before the due date, they might be able to pause the requital for you .
What to do if you have missed a payment
If you miss a car indemnity payment, there is probably no need to panic. If it is your first neglect requital, your insurance party might let it slide, assuming you are not respective weeks delinquent. In this case, contact your insurance company angstrom soon as you realize the due date has passed. sometimes, explaining the situation to an agent can work in your favor, particularly if you are a beneficial customer. Make the payment american samoa soon as possible, and if you are not enrolled in autopay, consider signing up to avoid missing a requital in the future. many indemnity companies, like Allstate and Amica, offer a small deduction for drivers who set up autopay .
If you missed your payment by a few days
If your car indemnity requital is several days late, the site could be more serious. Again, it is a good idea to contact your policy supplier right away and talk to an agent about your options. many car policy companies offer a grace period, which gives you some extra time after the initial deadline to pay your premium. Every insurance party has a different seemliness menstruation, but it typically ranges from 10 days to 30 days. If you are still within the deck period when you realize your payment is late, you can credibly make the requital without facing any penalties. however, if you have been late on more than one payment, your insurance company may charge a deep tip on clear of what you already owe or cancel your policy .
If your car insurance has been canceled
If you are systematically late on your payments, your indemnity caller will likely finally cancel your policy for non-payment. You should receive a notification of the cancellation, so this should not come as a surprise. When your car indemnity gets canceled, you are not allowed to drive legally. You will need to purchase another policy and provide update information to your state ’ second DMV to make certain your license and registration are hush valid. otherwise, you could face early penalties. In addition, it is improbable that you will get away with not making your outstanding car insurance payments. If you do not make the payments, your policy company could report the amateur sum to the credit agency flush after your policy has been canceled .
Consequences of missing insurance payments
Missing your policy payments comes with a number of serious consequences. Having a lapse in indemnity coverage can cost you money out of air pocket, and it might be a lot harder to obtain coverage in the future. here are some of the biggest penalties you might face :
- Policy cancellation: As mentioned, your auto insurer will eventually cancel your policy when you have missed a certain number of payments or get too behind.
- Failure to renew your policy: Not only will the insurance company cancel your policy, but they might not allow you to purchase another policy from them.
- Increased rates: When you purchase a new policy, your rate might be much higher than it was before due to having a lapse in coverage.
- Fines from the DMV: Car insurance is legally required in almost every state, so it is possible that you could receive a fine from the DMV for having a lapse in coverage.
- License/registration suspension: If you get caught driving without valid insurance, it is highly likely that your driver’s license and registration will get suspended until you can show updated proof of coverage.
- Fines from your lienholder: If your vehicle is financed and your car insurance lapses, your lienholder could charge you penalties for not maintaining auto insurance.
- Impacted credit score: Unpaid bills can end up affecting your credit score.
- SR-22 insurance: Somes states require drivers with a lapse in insurance violation to purchase an SR-22 certificate, which is an additional cost.
How to avoid a missed car insurance payment
If you have missed multiple cable car policy payments in the past, there are a few things you can do to avoid non-payment issues in the future. The easiest thing is to enroll in automatic pistol payments, which about every indemnity caller offers. Rather than making erstwhile payments on the due date each month, the money will automatically deduct from your savings bank account. When you get a modern accredit card, make sure to update any bills on car charge pay that the previous card was associated with, including your policy beak. You might besides think about setting a reminder a few days after the ascribable date to double-check that the payment was processed .
Frequently asked questions
What happens if your car insurance payment is late?
If your cable car indemnity payment is belated, you should pay it ampere soon as potential. It is besides a adept idea to contact your indemnity ship’s company and let them know. If your requital is several weeks former, you will credibly have to pay a deep tip.
How long is the grace period if you miss an insurance payment?
Some policy companies offer a decorate time period, which gives you some flexibility if you miss the requital deadline. normally, the decorate menstruation is between 10 and 30 days. however, it is a beneficial idea to check your policy documents to see if your supplier offers a grace period and how long it is .
Can you reinstate car insurance that was canceled for nonpayment?
It depends. Some policy companies will allow you to reinstate your policy if it gets canceled, while others will not. If your existing supplier will not reinstate your car policy, you will have to apply for coverage through another insurance company or issue a new policy with your stream insurance company if possible .
What if I cannot afford car insurance?
If you can not afford a car indemnity policy, you may be able to get low-cost coverage through your country. Keep in mind that merely a few states offer policy pools. additionally, you must meet certain income requirements to qualify .