140 – Late payments can cost a lot more than just a fee
Paying your insurance premiums on time is important, and not just because you avoid paying a late fee. The repercussions of habitually late insurance payments can affect whether or not your policy will be renewed, and has the potential of eventually becoming a mark on your credit score as well. Most people do not take the time to think about it, but your car insurance is a financial transaction, and how you hold up your end of the contract can affect your financial lifestyle for years to come.
Consider that making a late insurance payment seems harmless enough. You can simply go by next week and make the payment along with the late fee. But what happens if something happens between now and next week, and you either forget to make that payment or find yourself no longer able to do so? And not only will your insurance get canceled, many states require insurance companies to notify the department of motor vehicles of insurance cancellations, endangering your driver license or license plates.
And what happens if your insurance gets canceled and you get into an accident? Not only do you have to face the legal aspects of driving without insurance, but you will also have to pay for the accident costs out of pocket as well. It is easy to see how the consequences of late insurance payments can very quickly escalate from a minor fee to a major financial problem that could have been easily avoided.
If you are having troubles with your current insurance company, now could be a great time to get an online insurance quote. You can customize the policy exactly the way you want, compare it to other insurers and even sign up for the coverage all without ever leaving your home. You can even adjust the deductible you have to pay to raise or lower your annual premiums.