What Happens If You Don’t Pay Your Insurance Premium For Your Car?
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UPDATED: Jul 19, 2021
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Insurance is like a utility bill. If you don’t pay it, there are dire consequences. For example, you will be constantly under pressure when you are behind the wheel of a car. Your license, vehicle registration may be suspended and you will have fines to pay.
There are court fees, penalty for driving with an unpaid or defaulting insurance plan, and the need to get a new insurance plan if your current one refuses to handle your account anymore. This puts you under the category of “high risk” client and will mean a higher base rate.
On top of all these, you could have the insurance company sending collectors to your office and home. If payment is still not received or updated after a certain period, it goes into your credit record.
A better idea than non-payment would be to try and re-negotiate your insurance policy and request for a lower rate. The insurance company may be willing to talk to you about it but then it will be on a case-to-case basis.