Does Late Car Insurance Premium Payments Increases your Premium?
Reader’s Question:
I live in Texas. I have had late payments in my car insurance premium. Will my rates go high in the future because of this?
Maria
Houston, TX
A number of things may result from not being able to pay your premiums on time. Car insurance providers in Texas will definitely consider your late payments as a negative point against you. This could possibly result in increased premiums in the future. Worse, your insurance provider may also refuse to renew your policy. Much worse, they can cancel your coverage completely.
Delivery of your payment to the car insurance company does not always mean reinstatement of your coverage. They may send back the payment to you through mail if they have cancelled your car insurance policy. Other companies keep the payment to apply to any balance you may still owe them.
But let’s say something untoward happens, like you get into an accident. There you are calling your insurer, and you’re turned down because your policy has been cancelled due to delinquent premium payments. Then since you no longer have car insurance, the state government could cancel your license.
Right now, this scenario may seem a bit improbable or exaggerated to you. But it’s not a good idea to be clueless about your car insurance status, either. So, always keep yourself updated by calling your agent and avoid future headaches.
Does Late Car Insurance Premium Payments Increases your Premium?
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