Were you late with your most recent car insurance payment? Here’s what you need to know about missing a car insurance payment, and what steps to take next:
Contact your insurance company
The first thing you should do as soon as you realize you missed a payment is to contact your insurance company and explain why. If you still are unable to make the payment, explain your circumstances. If you’re able to send in a late payment, make sure you to do it as soon as possible. Whether you do or don’t send in a late payment, it’s important to find out what your insurer’s penalties are for missing a payment. You may lose coverage for a missed payment, especially if you only pay for your car insurance twice a year. On the other hand, you might only need to pay a late fee.
Try to rearrange your payment schedule
Paying for car insurance every six months is meant to be more convenient and may even save you some money, but unlike smaller monthly payments, these biannual payments can be much more burdensome financially. If these larger payments are too much to handle, find out from your insurer if you can take on a different payment schedule that allows for smaller, more frequent payments.
Look into short-term coverage
If you do lose your auto insurance policy, explore your options for short-term insurance in the meantime, before you get a new policy. When shopping for new coverage, you can always go through your previous insurer, but you’ll need to reapply for coverage all over again if your policy was canceled due to a late payment.
Set up an automatic payment schedule
If you simply forgot to pay your car insurance bill, avoid cancelation or other penalties in the future by putting your payments on an automatic debit. This way, you’ll never have to worry about missing a payment and you’ll know that you’re always insured.
Do you need cash now to take care of monthly bills and expenses that have been accumulating? Peachtree Financial Solutions may be able to help if you’re receiving structured settlement payments. Contact us today if you’d like to learn more about getting your money upfront through the sale of some or all of your future payments.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.