What Will Happens If I Don’t Pay My Insurance Premium
You can still keep your insurance policy if you don’t pay your premium on time. Most policies come with a one-month grace period, giving you extra time to pay your premium. But in some cases, missing the deadline for a single insurance payment can lead to consequences. Read on to know what could happen to your policy if you don’t pay your premium.
You won’t be covered
Missing just one monthly payment can result in a loss of insurance coverage. If you don’t pay your premium, the insurance company won’t cover you when you file a claim, and you will have to pay out of your pocket.
Your insurance premium will increase.
Your insurers can cancel your coverage if you miss even one monthly payment. A lapse in your coverage could make any future insurance policies expensive. Most insurers don’t want to see that you’ve any lapse in coverage. Maintaining regular insurance payments is the best way to keep your premium low.
You could lose your home or car.
If you are renting a house or leasing a car, the lender may require specific types of insurance. For example, a car financer might require comprehensive and collision insurance coverage, while HOAs require you to hold a renters’ insurance. If you don’t maintain their standard, a lender has can evict you from the house or take back the car.