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Cancelled Car Insurance Policies Are A Headache For Insurance Agents

Every day car insurance policies are cancelled across the United States. Most drivers think that their car insurance agent will contact them by phone or email if their insurance policy is in danger of being terminated but this is not the case.
The number one reason why most car insurance policies get cancelled is due to non-payment of monthly premium payments.

Most insurance companies will send you emails or written correspondence to tell you that you need to catch up on making your monthly car insurance payments or they will cancel your coverage.
When times are tough, many drivers think that they can avoid paying their car insurance premiums on time and that it is no big deal if the policy gets cancelled. This is a costly error to make though because allowing your insurance policy to lapse can cost you hundreds of dollars more each year.

This is due to needing a new policy to be written.
Car insurance agents tend to want to stay out of financial matters with their clients. When a policy holder becomes delinquent on making their payments, agents really will not call them because they are busy. Many people are either late or delinquent on their premium payments so it would not be an efficient use of the agents’ time to have to call up policy holders who probably already know that they have fallen behind on their bills.
If insurance agents did take this action then they would actually open themselves up to potential liability issues.

For example, if every month an insurance agent calls each delinquent policy holder and someone gets left out then that policy holder could file a lawsuit against the agent if they get involved in a collision.
This is because of the fact that the driver could claim that they were never informed of the delinquency and that they should not be held financially responsible for the lapse in coverage.

In today’s economy, many policy holders are barely getting by so they might be caught up one month on their premiums and then fall behind again in a few months.
If you are forgetful then consider paying your insurance premiums in full. This can give drivers a discount and allows them to know in advance that they will have continuous car insurance coverage for at least six months. Car insurance companies like drivers who take initiative and do this because people who allow their premiums to lapse create risk and do not bring in enough money in premiums.
For those policy holders who cannot pay their insurance premiums in full, consider setting up recurring payments so that the money is automatically deducted each month. Some insurers give people a discount for this as well.

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