Maintaining auto insurance helps ensure your vehicle continues to have protection from risks. Most states require drivers to maintain a specific amount of coverage.
To keep that policy active, you will need to make payments on time. Most policies are for six months, though some extend longer, even to a year. It is your obligation to keep your car insurance plans up to date. Doing so can help you avoid complications related to cancellation.
When Can an Insurer Cancel Your Auto Insurance Plan?
Car insurers will often cancel policies if a policyholder misses a payment. Some companies are more lenient than others.
In some cases, just being late with payment can warrant a cancellation of your plan. When this occurs, it becomes necessary for individuals to make up late payments. They may also have to pay fees to have the policy reinstated. Reinstatement is at the discretion of the insurer. They do not always have to offer it.
Once Canceled, What Happens?
If you are driving without minimum auto insurance in place, you might receive a ticket and pay a fine. You may receive points on your license, suffer a suspension, or, in some cases, have the license revoked.
In some situations, you may have to get an SR-22 certificate from your auto insurance provider that shows you have coverage. This can increase the cost of your auto insurance.
Driving without car insurance is very risky. If you cause an accident, you may be legally responsible for all of the losses the other person suffers. This may include medical bills, lost time at work, long-term care and rehab, as well as pain and suffering. You may have to cover the cost of repairs to a vehicle or other damaged property as well.
Another complication has to do with obtaining a new policy. If you go without insurance even for a day, it can be very expensive to gain coverage again. You may pay more for the same amount of coverage if your policy expires.
Contact your auto insurance provider directly to alert them of any missed payment. This ensures your agent can help you protect your policy whenever possible to avoid a cancellation. That can save you time and money.
Peachstate Insurance is here to help you meet your Cartersville GA auto insurance needs. One of our agents is ready to help you get a fast, free insurance quote. Call us at 877.991.2478 for more information.