Is it a bad idea to delay payments for auto insurance?

If you don’t have affordable auto insurance, is it bad to delay payments for auto insurance? It certainly is. Delaying your payments can result in quite a lot of negative outcomes, and you should never delay your payments if you can help it.

Of course, if you think your automobile insurance is too expensive, you can always shop online for quotes (read our “Is it bad to get an auto insurance quote online?” for more information) . But is it bad to delay payments for auto insurance for auto insurance quotes too?

The answer is yes because if you miss payments on your current policy other insurance companies will count you as a higher risk and won’t be too eager to offer you lower rates.

Don’t wait to find affordable auto insurance. Before learning more about if it is bad to delay payments for auto insurance, enter your ZIP code into our free tool to get free insurance quotes from companies near you.

What happens if drivers pay their insurance late?

Now you may be asking yourself, “What happens if I pay my auto insurance late?” If something, like a late paycheck or unexpected bills, were to keep you from making your payments on time, there are a few different things that could happen next.

To be forewarned is to be forearmed after all, so it’s in your best interest to review what could happen if you were to miss making a payment on time. Let’s take a look at what could happen in such a scenario:

• A reminder to make your payment would be sent out
• A missed payment could result in a lack of coverage
• Your premiums could rise after you make a payment to reinstate your policy
• You could be hounded by a collection agency if the bill remains unpaid
• If you’re leasing your vehicle, you could lose it

Now, according to auto insurance cancellation laws, if you have not paid your bill, an insurance company is well within its rights to cancel your policy even if it is in the middle of its term.

But as you can see, failing to make regular payments can cost you not only your insurance but your vehicle as well if you lease it or have a lien on it. This could have dire consequences if you need your car to get to and from work.

If you are a day or two late on your payment, there’s no need to worry though as all insurance companies have a grace period that allows you some time to make your payment.

Read more:

• Is it a bad idea to pay all at once on auto insurance?
• Is it a bad idea to give your Social Security number when shopping for auto insurance?
• Will my auto insurance cover interior damage?

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What is an auto insurance lapse grace period?

If you were to ask an auto insurance company, “Is it bad to delay payments for auto insurance?” They would most likely say, “Yes,” but don’t worry. Your insurance company will not cancel your coverage if your payment is a day or two late unless it leads to a car insurance coverage lapse.

Typically, insurance companies provide a grace period of 10 to 20 days so you can send in your payment before anything drastic happens. Your insurance company will also contact you via a letter or a phone that you have missed a payment.

How can drivers avoid missing payments?

If you’re worried about delayed payments for auto insurance, then buy auto insurance that allows you to set up automatic deposits. That way your payment will be made on time every month, and you can rest easy knowing that your coverage is still intact.

This is one of the best ways to avoid missing payments and is great for drivers who are forgetful or who simply get overwhelmed when the bills come in every month.

Read more: Is it a bad idea to go through a bank to get auto insurance?

How can drivers afford auto insurance?

You may be grimacing at the sight of your insurance bill every month, but reviewing your policy may reveal that you are missing out on discounts that you could apply to your policy.

Most major insurance companies offer a wide range of discounts that can reduce your rates by as much as 30%. The next time you review your policy, peruse this list to make sure every discount your qualify for is being applied to your policy:

If your policy is too expensive even with discounts, you can always research other types of policies like pay-per-mile insurance. If you drive less than 10,000 miles per year on average, this could be a great policy for you as you would only pay for much you drive.

Read more: Is it a bad idea to set your auto insurance miles too low?

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Delaying Payments for Auto Insurance: What You Need to Know

If you need lower auto insurance rates, is it bad to delay payments for auto insurance?

Delaying payments for your auto insurance may give you momentary monetary relief, but in the long run, failing to pay your insurance bill could result in the cancellation of your policy or even the loss of your vehicle.

Setting up an automatic deposit for your insurance bills or purchasing a policy that best suits your budgets are two great strategies to combat missed payments.

Now that you know more about if it is bad to delay payments for auto insurance, enter your ZIP code so you can receive free insurance quotes today and find the best policy for you.

 

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