Late Payments May Increase Auto Insurance Rates
Stay on top of paying your bills, if you want to continue to have affordable car insurance. If you have late payments, your insurer may add a surcharge to your premium. And if you accidentally let your insurance coverage lapse, you will not only pay a higher premium when you renew your policy, but also you put yourself at substantial financial risk. If you are uninsured and have an accident, you will be responsible for any damages. Make sure you don’t have a gap in your auto insurance coverage, when you apply for auto insurance quotes.
Most auto insurers give policyholders a grace period for paying their premium. However, this period is usually 10 days after the payment is due. So, if you haven’t paid your bill, your insurance company will send you a cancellation notice. If you have an accident and your insurance company has not received your payment during the grace period, your policy will not cover damages. You will be personally responsible. In most cases, if your policy is canceled, your insurer will reinstate it. However, you may have to pay a higher rate. You can also apply for auto insurance quotes to compare rates.
Drivers who allow their policies to lapse for any reason could wind up paying higher premiums and an initial 25 to 50 percent surcharge when they buy a new policy. Insurance companies charge these motorists more because they consider them to be irresponsible drivers and, therefore, higher risks. Reports show unlicensed and uninsured drivers are disproportionately involved in fatal accidents. On the other hand, drivers who have good driving records are able to get safe-driver discounts on their insurance premiums. If you let your coverage lapse, make sure you shop around for auto insurance quotes.
If you pay your bills late, you will probably hurt your credit score. In most states, insurers use your credit score as one of the factors in determining what’s called your insurance score. If you have a low insurance score, you will be charged more for your insurance premium, because you are considered more likely to file a claim on your policy. Studies show how a person manages his financial affairs is a good predictor of his future insurance claims, according to the Insurance Information Institute. Review your credit score, before you apply for auto insurance quotes.
Once you have done your research, you are ready to shop around for lower auto insurance rates. You can call agents in your local area, contact insurance companies directly or use InsuranceQuotes.com to instantly get competitive auto insurance quotes from the nation’s leading insurance providers. Simply fill out an online form on InsuranceQuotes.com to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.