by Guest » Thu Oct 16, 2008 05:07 am
Hi,
Are there any chances that my auto insurance policy may get terminated in case I miss my premiums for a particular month?
Thanks, Mermaid-attitude
Are there any chances that my auto insurance policy may get terminated in case I miss my premiums for a particular month?
Thanks, Mermaid-attitude
Posted: Thu Oct 16, 2008 05:40 am Post Subject:
Yes, your carrier has the right to cancel your coverage for a rightful cause e.g. not paying the premium in time - but with the issue of a legal notice from their end.
Mostly, I've come across companies who are not that harsh. They would mostly remain contented with their due (your missed premium) along with a late payment charge. Even, there are some carriers who'd send you a termination letter which states that your policy could be reinforced in case you pay for all dues prior to your cancellation date. Crossbreed
Posted: Thu Oct 16, 2008 07:40 am Post Subject:
Let's look at it in this way…. You're paying to your insurer against the promise that he will cover the expenses that may arise in case of an auto accident. Now if you stop paying for the policy, the insurer will then not be responsible for keeping his promise as well.
However, most of the auto insurance providers will allow you a certain time period after the premium due date within which you can pay the premium without attracting any penalty. This time period is known as the grace period and runs normally for 30 days after the premium due date. The policy, however, may get subjected to termination upon expiration of the grace period.
Posted: Thu Oct 16, 2008 01:49 pm Post Subject:
We give you 30 days after your due date (but two payments are due). After that, if you don't pay, you have 30 days left before we terminate your policy - and during those last 30 days, if there is a claim, there isn't any coverage.
Posted: Thu Oct 16, 2008 06:28 pm Post Subject:
That sure isn't worth the gamble. Insurance ranks right up their with the groeries in my house. You sure take a big risk of losing everything when your insurance is late or terminated...which is why mine is auto-deductd every month from my account.
Posted: Thu Oct 16, 2008 06:59 pm Post Subject:
Smart move firey. We even give an additional discount to people who pay that way.
Posted: Fri Oct 17, 2008 12:02 am Post Subject:
Yes That is the way my company works to (nationwide). They also offer a quarter percent lower interest rate at the bank if you chose this option with any of your loans. I would do it regardless. I always say "better safe than sorry".
Posted: Fri Oct 17, 2008 11:49 am Post Subject:
The policy, however, may get subjected to termination upon expiration of the grace period.
Whenever you get a cancellation letter from your carrier, the date of cancellation would be mentioned in it. There are some carriers who'd offer you the opportunity to re-activate your policy. For such reinforcement of your policy you'd probably need to pay for the over-due premium as well as a small penalty. But you'd need to act quickly, since for the period between the termination of your policy and its reinforcement you're not insured. Roddick
Posted: Fri Oct 17, 2008 10:33 pm Post Subject:
Once insurance is terminated isn't it hard to get coverage through another provider?
Posted: Fri Oct 17, 2008 11:45 pm Post Subject:
You can get it but you'll pay. It's always cheaper getting insurance if you currently have a policy with someone else.
Posted: Sat Oct 18, 2008 01:11 pm Post Subject:
I knew there was a catch htere somewhere. I have forever been with the same company but I have a brother that has yet to grow uo (32 yrs old) and is always buying junk vehicles..they breakdown and he drops the ins...doesn't get another for a while...you get the pic? Seems he is always trying to get insurance....
Sounds like insurance is alot like your credit...keep it in good standing and you won't have much to worry about...
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