Every driver knows that auto insurance is a must-have if you want to keep your vehicle on the road in the country. But what happens if you aren’t able to make a car insurance payment on your policy when it’s due? What should you expect to happen in the aftermath? What step can you take to rectify or minimize the damage caused? We’ll be looking into all these and more extensively in today’s show!
As you already know, auto insurance is the financial protection that you get for your vehicle, so you don’t have to pay out-of-pocket if your automobile is damaged under pre-established circumstances. Now, whether you’re covered under the basic Third Party, Third Party, Fire, and Theft or Comprehensive coverage, you have to make certain payments in return for this protection. Failure to make the payments of your premiums when due or not making payments at all can have rather far-reaching consequences. Failure to live up to this responsibility can be legally construed as a breach of contract.
Should this happen, your insurer reserves the right to effectively cancel your policy, and you mightn’t even be aware of the fact. What’s more, in extreme cases, this is also enough to have your driver’s license withdrawn. Needless to say, that not paying your insurance premiums will reflect very badly on your financial record as well. And because you can’t even put your car on the road without insurance, failing to pay your premium effectively means that you won’t be able to drive anywhere until you fix this problem. So, how do you go about sorting through this and preventing the worst from happening? Well, in most cases, you can work things out with your insurer before everything gets out of hand. This will usually involve reaching out to your agent or the person in charge of your policy and finding out if your insurer operates a custom late payment fee.
Once you have made the late payment fees and you have come to an understanding with your insurer not to repeat paying late, your policy will be reactivated, and that would be all. However, in some cases, you cannot sort things out with your current insurance provider. In this case, you need to start shopping for another insurer. This needs to be done quickly as it won’t be a very easy feat to accomplish. Ultimately, as we said before, it’s best to avoid defaulting on your car insurance payment, if you possibly can. That remains the best way to avoid any complications with your policy.
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