If you were now late in making your auto insurance payment your policy would be canceled for non-payment.

Most states require the insurance company to inform the Department of Motor Vehicles, or like state agency, when a person's insurance lapses. The penalties vary for a lapse in car insurance but in many states your car's registration would be suspended.

State laws and insurance company guidelines differ in regards to if there is a grace period for payments and the consequences for not paying on time. In most cases there is not a grace period for auto insurance payments so if you do not pay your insurance payment by the date and time listed on your insurance policy statement you will be cancelled for non-payment.

You may be able to get your insurance policy reinstated by contacting your insurance provider depending upon their rules and your state’s laws. Most reinstatements are not considered a lapse in coverage.

If you do not get your insurance reinstated and drive your car without any insurance or get caught by the state for having a lapse in insurance then the penalties placed upon you may include fines, jail time, and license and registration suspension. Also it could be noted on your credit history that you were dropped for non-payment which thus could affect your credit rating.

As you can tell the consequences for not paying on your auto insurance may be severe depending upon your state's laws. It is best to keep your vehicle insured and not have a gap in coverage due to non-payment. A cancellation for non payment may make it difficult to find insurance with a different company as well, if your insurance carrier will not reinstate you.

If you need to shop around for auto insurance rates that you can afford come to us for a quote.