Car Insurance Premiums and Late Payments
A good credit score has become key to getting the best deal in many aspects of our lives.
Nowadays your credit score affects more than just an auto purchase. It affects your auto
insurance premiums as well.
Not only will late payments on your credit card purchases have a negative affect on your
credit report, but also late payments on your car insurance can result in a low credit score.
This can greatly increase the amount of your insurance premium.
In addition, most insurance companies will cancel your policy after only one missed insurance
premium payment.
Very few auto insurance companies have a grace period for your premium payment. If you
are late just one day and have an accident on that day, they are not obligated to pay for
damages.
Nowadays your credit score affects more than just an auto purchase. It affects your auto
insurance premiums as well.
Not only will late payments on your credit card purchases have a negative affect on your
credit report, but also late payments on your car insurance can result in a low credit score.
This can greatly increase the amount of your insurance premium.
In addition, most insurance companies will cancel your policy after only one missed insurance
premium payment.
Very few auto insurance companies have a grace period for your premium payment. If you
are late just one day and have an accident on that day, they are not obligated to pay for
damages.
If you believe that you have a grace
period for your insurance premium,
have your insurance representative
point this out to you and have them
show you where in your policy does it
state that you have a grace period.
Most insurance companies want your
business so they should call you a
few days before your payment is due
but don’t rely on the call.
If you make it a habit of being late or
have had a few fender bender claims
on your policy, the insurance
company may be glad to see you go.
If an insurance company does drop
period for your insurance premium,
have your insurance representative
point this out to you and have them
show you where in your policy does it
state that you have a grace period.
Most insurance companies want your
business so they should call you a
few days before your payment is due
but don’t rely on the call.
If you make it a habit of being late or
have had a few fender bender claims
on your policy, the insurance
company may be glad to see you go.
If an insurance company does drop
you, it will reflect on your insurance file that other insurance companies access to evaluate
your risk.
Believe it or not, there is a bureau that analyzes the risk of every licensed driver. Insurance
companies use this record to approve or deny insurance. This report also gives them an idea
of how much of a premium to charge you.
If you continue to have issues with late payments, you may be required to pay the entire
insurance premium up front before insurance is issued to you.
Insurance companies now offer automatic draft to take care of your monthly dues.
Personally, I never like to have anyone have access to my bank account. However, if you
feel this will work for you, do it. Just make sure that you review your bank statement every
month to assure that your money is where it is supposed to be.
your risk.
Believe it or not, there is a bureau that analyzes the risk of every licensed driver. Insurance
companies use this record to approve or deny insurance. This report also gives them an idea
of how much of a premium to charge you.
If you continue to have issues with late payments, you may be required to pay the entire
insurance premium up front before insurance is issued to you.
Insurance companies now offer automatic draft to take care of your monthly dues.
Personally, I never like to have anyone have access to my bank account. However, if you
feel this will work for you, do it. Just make sure that you review your bank statement every
month to assure that your money is where it is supposed to be.
Debt Credit Learning Center
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| Copyright 2005-2008 Debt Credit Learning Center |
God Bless.
Carlos Cruz
Debt Credit Learning Center
Carlos Cruz
Debt Credit Learning Center