A late auto insurance payment can cause your car coverage to lapse and thus, deprive you of any financial protection if your vehicle meets with an accident. Besides, when you pay premium after due date, your insurer will charge you late fees up to $15 for every single day that has passed post the premium payment date which will only add up to your pocket expenses and adversely affect your driving record as well.
Normally, monthly insurance payments are considered to be late once you pay them once agreed upon date has passed. But that can be as precise as 12:01 A.M. and so, your car coverage can lapse almost instantly. Such a mistake on your part can even lead to total cancellation of policy and if after specified time, your vehicle meets with an accident in the meanwhile, the coverage for your car will stand discontinued and so, you are without any financial protection.
Yes. Your auto insurance coverage may be cancelled if have stopped paying the monthly premium altogether. Such a proposition can even lead to your being tagged as a “high risk” driver which means that you will be charged significantly high insurance rates later on. And if your car is under loan finance, it also can create unnecessary financial problems.
If your current insurer cancels your policy just because you have missed a monthly vehicle insurance payment then it is likely that your credit rating will be affected. Most of the car insurance companies notify credit bureaus about non-payment of premium by drivers.
One must not forget the fact that credit rating of a driver is an important factor in calculation of premium. So, it is vital that you keep continuity of coverage for your car and prevent an unnecessary lapse of cover. Otherwise your credit score may take a dig which will ensure a long standing impact on the car insurance rates provided to you in future.