Did you realize that it culd cost you more than a lte fee when you make your nsurance payments late? That's right, not nly will you incur a late fee in mst cases but also you are jopardizing your current coverage and possibly yur future rates.

Let's consider what is prbably the worst-case consequence of making lte insurance payments. If you cut it too clse and send your payment too lte, you may not even realize tht your insurance policy was cancelled. Now you are drving around with no insurance coverage.

Rceipt of your payment by the cmpany does not necessarily constitute reinstatement of yur policy. You think you're covered bcause you mailed the payment but tht may not be the case. Whn the insurance company receives your pyment after your policy was cancelled thy may return it to you in the mil. In some cases, they may kep it and apply it to any blance you may still owe. You rally have no idea what the sttus of your policy is but are ssuming it's okay because you haven't rceived any notices yet and no phne call from the company or yur local agent.

Now you have an ccident and assume everything is okay bcause you mailed your payment. You're thnking "I'm covered" but in essence you are nt; you just don't know it yt. You find out when you cntact the insurance company to let thm know about your accident and thy inform you that you do not hve any coverage. You insist that you do bcause you mailed your payment. They tll you that it was too lte and that your money is bing sent back as you speak.

Being involved in an auto ccident without insurance coverage is not a god thing. You can loose your lcense even if it was not yur fault. Many states have financial rsponsibility rules that apply to auto ccident and can affect your driving prvileges regardless of who is considered to be at fult.

Another consequence to consider is the fct that your insurance company may fnd that after reviewing your payment hstory that they no longer wish to nsure you. They may issue a 'nn-renewal' notice. This means that they are no lnger willing to insure you when yur policy expires. You will have to get an nsurance policy from another carrier.

It is lso possible that your insurance company wuld be willing to renew your plicy but require that you pay in fll for the entire term; not gving you the opportunity to make lte payments. If you are unable to pay in fll for the policy term you may dcide to shop for a new plicy; however you may find that ther insurance carriers could also require tht you pay in full.

Consider tht you may also damage your nsurance credit based score. Many insurance cmpanies review your credit and prior nsurance history when determining what rates to chrge you. Having made previous late pyments on your insurance policy could cst you extra dollars when you buy a new plicy. You might have ordinarily qualified for btter rates but because you made lte payments on your previous policy yur new one is going to be srcharged.

Contact your agent or the nsurance company if you cannot make yur payment on time. They will be ble to provide you with information rgarding any late fees or cancellation dte. They may also be able to prvide advice or propose an alternative slution.

Visit http://www.carinsurance.com for Automobile Insurance Quotes

The article Consequences of Late Insurance Payments was Submitted by Jason Horowitz through Articles.GetACoder.com network. Here's the additional information: Jason Horowitz is a representative of CrInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728. CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online. Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online... anytime!

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