What Happens if You Don't Pay Your Insurance Premium for Your Car?

There are times when your finances become out of balance, and you become unable to pay your bills. The ability to pay your car insurance suddenly becomes an impossibility, and you are left wondering what course of action to take.

What Happens if You Don't Pay Your Car Bill?

Automobile insurance companies typically do not help out customers who cannot pay their bill on the due date. If your premium due date arrives and you fail to make a payment, your automobile insurance will be canceled effective that day.

There is no extra period of time in which you can make the premium payment after the due date when it comes to the automobile insurance industry. Other industries provide grace periods so their customers can make a payment without losing their insurance.

It is illegal to drive without automobile insurance, and some places impose severe fines on individuals who allow their automotive insurance to lapse. If you are caught as an uninsured driver, a judge can order you to surrender your license and suspend it.

In order to prevent the penalties, it is best to simply park your car and find alternative methods of transportation as you go about your everyday life.

Of course, when the insurance lapses on a car, it is illegal for it to be on any public roadway. it does not matter if it is parked along a curb. Your car will be tagged and impounded, and the police will fine you. Not only will you have to pay the fines for being a non-insured motorist, you will have to pay the impound lot to retrieve your car. Impound fees are expensive, and you accrue additional fees for each day your car sits on the lot. Additionally, in order to retrieve your vehicle, you must provide the impound lot with valid insurance documentation for your vehicle.

Turning Your Car Insurance Back On After a Lapse

When you are finally able to restart your car insurance, the effects of the lapse will continue, and you may have increased car insurance premiums. Insurance companies may use your past situations to increase your car insurance premium amount.

Your insurance agency will impose costly fees for providing this service in addition to the amount of money they charge you to restart your automobile insurance policy.

Prevent This From Happening. Prepare Now For the Unthinkable

• The financial damage that occurs when you let your automobile insurance lapse can become enormous in a very short period of time. Because of the lapse, you are considered part of the high-risk group which insurance companies use to refer to people who fail to make their insurance premium and who became uninsured as a result.
• You can prevent the chaos that ensues once your automotive insurance lapses and protect yourself from the fees and increased premiums your insurance company will impose by simply keeping it from lapsing. While this sounds like an obvious and simplistic answer, it makes sense to plan for the possible event that could cause a financial disaster.
• Instead of making the mistake of not paying your insurance at all, take the necessary steps to see if you can reduce your automobile insurance premium obligation. Visit your auto insurance agent and take an in-depth look at your insurance policy.
• Additionally, you may discover you could drop your insurance coverage to the state minimum. Typical minimum car insurance policies have premiums that are considered less expensive than other policies.
• If you are unable to get a substantially reduced insurance rate after meeting with your automotive insurance agent, you might consider changing insurers. If you decide to switch, make sure you compare several insurance quotes from several insurance companies.
• Some of the areas you can discuss with the insurance agents are your collision and comprehensive coverage. Liability insurance is quite a bit less expensive than comprehensive insurance. If you have an older car that is paid off and do not mind paying for your own automobile repairs if something should happen, you can significantly decrease your automobile insurance bill.
• Additionally, your deductible can decrease your insurance bill. A higher deductible results in slightly lower premiums. However, remember that an increased deductible can result in higher out-of-pocket expenses if you are in an accident. If you are willing to take the risk, the small deduction in your premium might help meet your financial obligations to your auto insurance agency.
• You can also find ways to decrease your insurance premiums through the car you choose to drive. By switching to a car that is cheaper to insure from a more expensive car, you can cut your auto insurance rate while maintaining your status as a valued customer instead of a high-risk individual.