If the policyholder misses an insurance premium and the insurance company issues a cancellation notice, what should he/she should do to keep the insurance policy?


For liability insurance policies, the insurance company would normally send a cancellation notice several days before the effective cancellation date. In most of the states, this notice should be issued at least 10 days before the date of cancellation of car insurance. The insurance policy terms and conditions would also invariably specify this period. If the policyholder makes the premium payment before the date of cancellation, the policyholder would be able to retain the policy coverage. If the payment were not made before this date, the coverage would retroactively terminate to the date when the premium payment was originally due. The insurance company need not issue any further notices of cancellation in this matter. It is the legal duty of the policyholder to pay premium amounts in time and any failure to do so would result in the loss of the right to question the policy cancellation by the insurance company. Under the circumstances, the insurance company would have the legal right to cancel the policy, which could not be disputed in any court.