During the grace period, policyholders can pay their overdue premiums to avoid an interruption in coverage. If the grace period ends without the necessary payment being made, Liberty Mutual will cancel the policy. As with any recurring bill, you must pay your car insurance premium regularly or your insurer will stop providing coverage. But unlike an unpaid phone bill, the consequences of not paying insurance can be far-reaching.
After a cancellation due to non-payment, the insurer can increase your rates and your license can be revoked. Below, we describe what happens if you don't pay and your insurance company cancels your insurance. Many car insurance companies offer a grace period, which gives you a little more time after the initial deadline to pay your premium. On April 9, Amica Mutual launched a premium relief program for cars due to COVID-19, in which all customers who have insured a car, motorcycle or motorhome with Amica on April 1 will receive a credit equivalent to approximately 20% of their monthly car premiums for April and May, pending regulatory approval.
When you have insurance again, contact your state's Department of Motor Vehicles (DMV) to update your insurance information and confirm that your registration and driver's license are still valid. If you pay your car insurance a couple of days late, you're most likely still in the grace period. Changing insurance companies could save you hundreds of dollars in your annual car insurance rates. Unfortunately, your rates are likely to increase, as car insurance companies charge more to drivers whose insurance was canceled due to non-payment.
Don't let your car insurance expire with the intention of buying a new policy when stay-at-home orders are canceled. If you're having problems with payments and want to avoid not being able to afford car insurance in the future, the best way to do that is to reduce your car insurance costs today. Mercury Insurance announced a customer giving program, which will issue credits worth approximately 15% of monthly auto insurance premiums for two months. In some cases, insurance companies have the option of canceling your car insurance policy even if you're only one day late in paying.
You face legal and cancellation penalties if you can't pay your car insurance payments and don't work with the insurance company in advance to reduce costs and delay payments. It's illegal to drive without insurance in almost every state, so once your insurance is canceled, you won't be able to drive. Compulsory insurance will increase your car payments, as your lender will add the cost to your bills. Starting April 10, NJM (also known as New Jersey Manufacturers Casualty Insurance Company) will reimburse the equivalent of 15% of the annual premiums that personal auto insurance policy holders paid over the past three months.
Since then, she has worked as a news writer in the insurance industry and has gained in-depth knowledge of state and national insurance laws and rates.