Late Auto Insurance Payments Raise Renewal Rates

Laptop and credit cardConsumers are always looking for the cheapest auto insurance rates. One sure-fire way to make that more difficult is by being late on insurance payments.

The negative consequences for a late policy payment can be quite serious, financial website Favstocks.com said. While those who make on-time payments are usually eligible to receive discounts when renewing their automobile policies, consumers who are late with payments may be charged as much as 40 percent more when renewal time comes around.

If consumers think they can avoid this by simply switching to another auto insurance carrier – think again. Before an automobile policy is issued, the new insurer will seek out a person’s record of past payments, the financial website said. When a carrier sees missed payments, it’s highly likely a more expensive rate will be given than would be to someone who always pays on time. In some cases, a policy may even be cancelled if a missed payment is discovered after the fact.

Consumers may want to consider setting up an automatic payment withdrawal with their auto insurance company to avoid missed or late payments. Money can be withdrawn monthly from a banking or credit account.ADNFCR-3298-ID-19812266-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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