What Happens If You Are Late Paying Your Car Insurance Payment?
Reader question:
What happens to my car insurance policy when I make a late payment?
Oswald
Atlanta
Thanks for your question, Oswald!
Many people, at some moment in their lives, come to a point where they have to choose between paying their Atlanta car insurance premium, or paying something else much more important. Most, though, skip payments out of forgetfulness and poor money management, and realizing what the consequences of your actions could be might make you a little more cautious about paying your car insurance payment on time. If you think about it, failing to pay your premium can actually be more expensive than paying it on time at the expense of something else.
Responsibility and timing are necessary when dealing with your car insurance premium, especially if you think of the consequences in one of the most dire, but very common, cases. Consider if you pay your car insurance premium through the mail, and you send it in a couple of days before it is actually due. It might arrive on time, and then it might not. If it doesn’t arrive on time, in many cases you might not even realize it. You could be driving around without proper car insurance coverage and be hopelessly unaware of this fact.
Even when they eventually get the check in the mail, they won’t for certain turn your coverage back on. Some might return the check to its sender, and others might use the check to pay off any other money that you owe on your car insurance premium. You will get a message in the mail eventually, but there will be a window of a few days in which anything can happen and you have no idea that you aren’t covered.
Even if the car insurance company does not cancel your payment outright, it is possible that once you have made one or more late payments, they decide that you are an unreliable payer and choose not to renew your car insurance policy. This gives you some more time to think, as you’ll have until the end of your current policy period to find a new company, but neither option is desirable.
- What happens if you crash?
One of the worst consequences of your car insurance policy being canceled thanks to a late payment is that you will get in a crash. If the crash is not your fault, then you won’t have to pay for damages, but you will lose your driver’s license. If it is your fault, not only will you have your own damages and injuries to pay for, but the other driver’s as well, and with no insurance coverage to fall back on, you’ll be taken to court and sued for a lot of money.
- What happens with the next company?
If you get your premium canceled with one company, then the next insurance company that you go to will consider you higher risk. Not only does that mean that you have a chance of getting your policy denied altogether, but if it is approved then your car insurance rates will be higher.
Cheers,
Fashun Guadarrama.
Can You Stop Paying For Car Insurance In Georgia?
Reader’s question:
I live in Georgia. I would like to know what would happen if I stop paying for my car insurance?
Archie
Good question.
If you stop paying for your insurance policy, your insurance company will cancel your insurance due to non payment and that would definitely cause you trouble. This cancellation will appear in your credit history and would be black mark on your credit report as non-payment. This might result on you having a hard time getting a car insurance in the future.
Most of the insurance companies would not insure an individual that has not previously paid on their policy. If due to non payment your insurance lapsed, your insurance company will inform the Georgia Department of Revenue a notice of termination or cancellation of insurance. A Notice of Lapse Mandatory Liability Insurance Coverage will be mailed to you once the DOR sees that you are uninsured. The notice will request you to pay a $25 lapse fee and would require you to show proof of valid car insurance coverage within 30 days. If you fail to pay the fee and show proof of insurance, your vehicle registration will be suspended or revoked. If you drive with suspended vehicle registration is considered a misdemeanor. You will also be subject to fines and vehicle impoundment if you are caught driving without car insurance coverage.
Goodluck!
MariCAR
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