Non-payment of auto insurance coverage may result in a driver’s insurance policy being canceled by the insurer. If a policyholder has a good record of making premium payments on time, the insurer may allow him or her to make up the payment and reinstate the coverage once the make-up payment has been received but this is totally at the discretion of the company.
If a premium payment has been missed, the policyholder should contact the insurance company as soon as possible to discuss his or her options. Some insurance companies will allow the policyholder to make a payment though online banking or with a credit card to bring his or her account up to date.
The policyholder should be sure to ask the company how long it will take to reinstate coverage once the payment has been made. Until that point, the policyholder should not be driving his or her vehicle, since there is no insurance coverage on it.
If the insurance company decides to cancel the policy for non-payment, the driver will have to start looking for another company willing to extend coverage to him or her. This may be challenging, since having a policy canceled by an insurance provider can place a driver into a high-risk category. Some insurance companies will simply refuse to offer to provide coverage, while others will extend this protection but will charge higher rates for it.