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Forgot to Pay Your Insurance Premium

pi-4Forgetting to pay your insurance premium is not the end of the world. Despite what you might think your coverage will not automatically be cancelled if you miss a payment. Insurance companies know their customers make mistakes and they have mechanisms in place to deal with missed payments.

If you use those mechanisms when you miss a payment you should be just fine. However, some consumers get their coverage suspended when they miss a payment because they don’t follow procedures.

The first and most important step that you must do when you miss a payment is to pay your premium. The way that you pay your premium can make a huge difference in this situation.

Don’t simply mail in a check for the missed premium because it can take the insurance company several days to receive the payment. Worse, it can take a large company several more days to actually cash the check and credit the money to your account.

You will want the company to get your payment quickly. The best way of doing this is to go the company’s website and follow their procedure for making an electronic payment. You’ll want to use an electronic payment because it should post to the company’s account within one business day.

80% of All Drivers Overpay for Insurance. Do You? Start Saving Now. If you want,  you can also send in an electronic payment using your bank’s electronic bill paying option. Either way you want to make the payment as soon as possible to avoid additional problems.

Once you’ve made the payment check to see if your coverage is in effect. You should be able to do this through the company’s website. If you cannot, call the company directly or your insurance agent and ask.

If coverage has been cancelled because of a missed premium, wait for about two days and check with the company again. If the coverage hasn’t been re-instated check with the bank or credit card company to make sure payment has cleared. If it has get a record of it such as a PDF document and contact the insurer again. Call the insurer back and ask why coverage has not been re-instated. If the first person you talk to cannot help you ask to speak to a manager. Keep complaining until you get results.

When you do complain make sure that you can prove you made the payment. The proof can take the form of an email or a fax containing an image of a receipt for the payment. Insurance companies like most bureaucracies respond to those who complain. If you complain enough they will address your problem more quickly.

 

 

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