Like any other insurances, health care, life and even auto insurance premiums give no grace period when it comes to payment. Imagine that you delay the payment of your insurance what if a day late and you have an accident, what will happen?
Nowadays, more and more auto insurers are linking late bill payments with auto insurance rates. Those with poor credit or late bill payments are most likely to get higher auto insurance rates. Also, cancelled insurance policies due to late payments will make you pay more. But it will not prevent you or disqualify you from getting one.
Aside from that, there are potential benefits of paying your bills on time. It improves your credit score which is helpful when you need to get lower rates on mortgages, loans and other insurances.
Because, many insurance companies realize the financial impact of paying insurance on time, they offer different strategies to make it happen. Some offer their clients monthly or quarterly payment schedules. While others require full payment for their customers first in starting the policy, after they will receive some offers which can be essential in paying insurances on time. But remember even though you are in payment schedule there’s still a need to pay on time.
Also, there are some insurers that write clause into their policy that when payment is not received on time, they will cancel your insurance immediately. Most insurers are being strict now, especially when it means for the benefit of the company. Yes, they value customers but they will not hesitate to get rid of one
There is an instance that in paying car bills now, some of the new car dealers are installing a small device under the dashboard. This signals when a car payment is due. Also, this device will prevent your car from starting if you don’t make it a habit paying your cars insurance on time. Moreover, some also put security code for the driver or the car owners to start the car.
So to make your car moving, do your responsibility. And the best thing you’ll receive by paying on time is peace of mind. You don’t have to worry if your bills are in order or not and that you won’t get shocked with unexpected fees and services charges. Beside as we note, having peace of mind is priceless. You can run but you can never hide.