You should never falter on your vehicle insurance payments. If you fail to pay the premiums on time, you are bound to encounter a number of grievous consequences. Even though you seem to be only 24 hours delayed with your car insurance premium payments, your policy could be canceled by the car insurance firm. It may not even consider reinstating your policy even after you have paid off all the dues. Moreover, the policy may no longer be affordable. You may have to pay relatively more amount for a comparable car insurance policy and worst still; you may have difficulty in identifying effective car insurance. Here are a few consequences of late payments for car insurance premiums.
Cancellation of Policy
An insurance company has the right to cancel your car insurance policy right at the middle of your policy’s term in the event you falter in your premium payments. If you fail to pay your car insurance premium on time, you are bound to face serious consequences. Moreover, if you have forgotten to renew your car insurance before the expiration date, the company has the right not to renew your policy. Your payment must be received by the insurance provider within the due date. It is just not enough to drop a check in the mail within the due date.
No Grace Period Allowed
Many drivers have a misconception that they would be allowed a grace period while paying their auto insurance premiums. It is a fact, that life insurance and even health insurance policies allow a month’s grace period. Often the state law necessitates such grace periods in case of life and health insurance policies but no such luck for car insurance policyholders. You need to make the premium payment dot on time. Do not miss the due date of the premium for your car insurance UAE.
Buying New Insurance Could Be Quite Challenging
It would be quite difficult to buy a new car insurance policy from a new company if your previous policy has been canceled midway because you had faltered on your premium payments. The new car insurance company would be examining your record with your former auto insurer. When they find that you have been kicked out due to nonpayment or late payment of premiums, they would not wish to insure you no matter how spotless your driving record is. Alternatively, they would not allow you to buy insurance via an installment plan. They would insist on a single annual payment.
Damage to Your Credit Score
A cancellation of your car insurance policy would be impacting your credit score adversely. A car insurance company would be notifying the credit agency at once in the event of a non-payment. Your credit rating would be impacted. Also, a bad credit score would lead to higher insurance premiums and in some cases, denial of coverage.
Give top priority to your auto insurance to avoid late payments leading to policy cancellation. Establish automatic withdrawals directly from your account or arrange for easy online payments. If at all you need to pay through email, you must allow some extra time. Stay connected with your insurance company. Communicate positively with them to maintain a good working relationship.