It’s always risky to make a late payment on the premium for Auto Insurance in South Austin TX. If there seems to be no other option, before delaying the payment, the policyholder should find out whether the insurer provides any grace period. Some continue coverage for a day or two, assuming that the payment will be made. Others automatically cancel the policy as soon as the payment becomes past due if the customer is making scheduled payments for one policy period. If the upcoming payment is for automatic renewal, the insurer may not renew the policy once the payment becomes past due.
With no grace period, the vehicle owner has a lapse in automotive coverage. He or she may consider it highly improbable that there would be any need for the insurance in that short amount of time, but sometimes unexpected situations happen. If this person causes a collision and doesn’t have liability insurance from a company such as State Farm, he or she can be held financially responsible for any damage or injuries that resulted. In addition, not having liability coverage is illegal in Texas, which leads to a hefty fine from law enforcement.
Some insurers will not continue with a customer who makes late payments. The underwriters may view this as irresponsible behavior and expect that irresponsibility to extend into other areas of life, including driving. When someone is dealing with this situation and applies for Auto Insurance in South Austin TX, there will be insurance companies that don’t accept the application. Their guidelines do not accept customers who have let their automotive insurance policy lapse.
Paying the bill late can be tempting if financial problems have developed, but it’s best to figure out some way to resolve the situation. Even if the policyholder must borrow money from a friend or relative, that is better in the long run than risking the unpleasant possibilities that might happen with a lapse in coverage. An insurance agent such as Patrick Court can talk with prospective customers about different payment arrangements that may be more affordable. Monthly payments may be more suitable than paying for a six-month policy all at once, for example.
