A big mistake you can make with car insurance is forgetting to pay your insurance premiums. Not only can it cause your premiums to increase as a result of not having coverage, but could make it more difficult to get coverage with a new insurance provider. Here are some things you should do when you find yourself in this situation and need coverage
Contact Your Current Insurance Provider Immediately
When you realize that you missed that crucial insurance premium payment due date, contact your insurance provider immediately. If you continue to drive without having any insurance coverage, you’ll see a bigger impact on how much you’ll pay to get coverage again. Your insurance provider may offer a grace period where you can renew coverage and not see a rate increase. Check with your insurance agent, and find out if you are still within that grace period window.
Provide A Reason Why You Missed Your Payment
Was there a reason that you missed your premium payment? If so, you should let your auto insurance provider know that there were extenuating circumstances that lead to that missed payment. For instance, you could have been in the hospital and unable to pay your bills, or you may have been deployed overseas because of military duty. If you have a valid reason, and can prove it to your insurance provider, they may forgive your lapsed coverage. Life is filled with unavoidable circumstances, and if you explain what happened, you may find that people are understanding to your situation.
Shop Around For New Auto Coverage
While missing a payment could have an impact with insurance rates with your current auto insurance provider, know that every insurance company weighs factors differently when determining your premiums. It is worth taking the time to shop around with different providers, and see what kind of offers you get for coverage. There may be an insurance provider out there that is understanding, and won’t factor in a missed payment with another provider when calculating premiums.
It’s always a good idea to pay your bills on time, but sometimes things happen outside of your control. If you use these tips to take immediate action after realizing you missed a payment, you could protect yourself against an unexpected hike in insurance premiums. Since you must have insurance to drive, it’s best to take steps to lower how much you must pay for the coverage you need. For more tips, contact a company like Nelson Insurance Agency.