Most of us hardly seek information about missed premium while obtaining car insurance rates to purchase a car insurance policy. However, there are instances when we forget to pay our car insurance premium. If you miss an insurance premium, it does not necessarily imply that your insurance provider will cancel your policy. More than often, insurance providers send notices about missed premium to policyholders. There are several options that you can consider to reinstate your insurance policy upon missed payment.
If you have missed payment towards your car insurance premium recently, your policy will most likely stay valid. Majority of the insurance providers offer a grace period, which range from one week to one month after the due date. The grace period enables a policyholder to resubmit the missed premium without bearing additional charges. Individuals need to review their insurance contract, which they had obtained while seeking car insurance rates in order to find out the grace period. A policyholder can also contact his insurance company over the phone to check the grace period within which the payment can be resubmitted without bearing any sort of penalty.
If you remember about missed premium several weeks after the due date, chances are that your policy has lapsed. In such a scenario, your best bet would be to contact the insurance provider to check if they are willing to reinstate the policy, if you make an instant payment. More than often, insurance providers will accept your request, but you will have to bear late fees and other penalties. Usually, this option is offered to those policyholders who contact their car insurance providers within one month of the missed premium. In some cases, insurance companies may ask you to make advance payment for few months for added protection.
If you have missed your car insurance premium long back, your policy might have been canceled. In such a situation, you will have to seek car insurance rates from a new insurance provider because the existing company may not offer you a car insurance policy again. However, it's advisable to contact the existing company first before obtaining quotes from other insurance providers to check if there is any way to reinstate the existing car insurance policy. What you should also know over here is that the new company will charge you higher premium, if the company learns that you have defaulted payments on your last insurance policy.
Every state has different set of regulations governing the cancellation of car insurance policies. As a policyholder, you should always check with your insurance company about the reasons for policy termination to avoid those situations.