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Penalties For Making A Late Auto Insurance Payment
When making a To-Do list, be sure to write at the top, preferably in red ink, the capitalized words "MAKE AUTO INSURANCE PAYMENT." Otherwise, if you miss the payment date, you'll face both short- and long-term repercussions.Penalties for Missed Insurance Policy Payments
The rules concerning a missed auto insurance payment will depend on your state and your provider. In most instances, however, you'll find there is no grace period. If you miss your insurance payment's due date your coverage will immediately terminate at 12:01 a.m.
Some auto insurance companies, by law, will attempt to notify you before legal action goes into effect. In Nevada, for example, the DMV mails a letter requesting car insurance verification. If the driver fails to respond or cannot provide proof, the DMV then follows with a certified letter informing the driver that his or her driver's license has been suspended. Subsequent driver license reinstatement fees can go as high as $250.
License suspension is just the tip of the iceberg regarding penalties for lapsed car insurance. In addition to the possible suspension of your driving privileges, you, depending on the laws of your state and the policies of your car insurance company, may also be penalized with:
- Late fees. In New York, for example, the state charges an $8 per-day late fee for the first 30 days, $10 per day for the next 30 days, and $12 per day for beyond 60 days.
- Jail time if you're involved in a car accident while your car insurance has lapsed.
- Driver license or driver registration reinstatement fees.
- A dramatic jump in insurance rates. Allowing your coverage to lapse will automatically classify you in the car insurance world as a "high risk" driver. Accordingly, you'll be saddled with "high risk" driver rates.
If you're unsure of your state's grace period policies, contact your state's insurance department. Or, if you know your auto insurance premium is going to be late, contact your provider about possible options to help limit the penalties.
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- What To Do If Your Auto Insurance Policy Lapses
Tips On Handling An Auto Insurance Lapse And What To Do If You Face Car Insurance Cancellation. Immediately Reinstate Insurance To Avoid Further Penalties.
- Who Needs High Auto Insurance Deductibles
How High Auto Insurance Deductibles Suit Certain Drivers. Get Info On Circumstances That Call For Higher Car Insurance Deductibles. Save Money With An Auto Insurance Policy That Suits Your Needs.
- Who Needs Low Auto Insurance Deductibles
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- Benefits Of Increasing Car Insurance Deductibles
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- Reasons To Change Auto Insurance Companies
Top Reasons To Change Auto Insurance Companies. Switch Car Insurance Providers When An Insurance Policy Doesn't Meet Your Needs Or Budget. Insist On Quality Customer Service And Products.
- How To Review Your Current Auto Insurance Policy
Tips On How To Review Your Auto Insurance Policy. Car Insurance Can Be Tricky. Be Sure You Understand Your Auto Insurance Policy Coverage Before Making Car Insurance Claims.
- When To Assume Higher Risk With Auto Insurance
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- How To Combine Coverage On Homeowners And Auto Insurance
Steps On Combining Homeowners Insurance And Auto Insurance. Learn More On The Benefits And Insurance Discounts Associated With Combined Coverage.
- What To Do If An Auto Insurance Company Denies Coverage
How To Handle Being Denied Auto Insurance Coverage. Learn What To Do If Car Insurance Companies Won't Cover You. You Might Have To Pay A High Insurance Premium.
- When To Compare Auto Insurance Quotes
Learn When It's A Good Time To Compare Auto Insurance Quotes. Easily Shop Online For Car Insurance 24/7. Compare Quotes Often To Find Competitive Insurance Rates.
- How To Get Car Insurance Coverage With A Suspended License
Steps On Getting Car Insurance Coverage With A Suspended Drivers License. Options For A Suspended License Could Include SR 22. Find More On Auto Insurance Online.
- How To Add A Car To Your Auto Insurance Policy
Info On Adding Another Car To Your Auto Insurance Policy. Combining Car Insurance Coverage Can Save You Money. Learn How To Lower Your Insurance Premium By Bundling Insurance Policies.
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