Accidents happen and it is not rare for someone to accidentally miss a car insurance payment throughout their driving experience. Unfortunately, you could face repercussions if you continuously miss car insurance premiums—including your coverage being dropped completely.
In general, the first thing that will occur after you miss a payment is that the insurer will send you a notice asking you to fix the mistake. It may also come with a small fine. If you pay the owed balance and the fine, your policy should remain intact. However, if you fail to heed the notice and miss another payment or do not fix the mistake in time, your policy could be cancelled. The insurance provider should send you a warning stating the date on which your car insurance will be cancelled. At this point, you may still be able to speak with your insurance agent about keeping your coverage and catching up on your missed payments to avoid a cancelled policy.
If nothing is done, however, your policy may be cancelled and you will not have coverage.
Keep in mind that it is illegal to drive without insurance in the U.S., although requirements vary state by state. In Texas, all driver must carry at least:
$30,000 in bodily injury liability per person
$60,000 in bodily injury liability per accident
$25,000 in property damage liability
Driving without the proper insurance required by your state can lead to further issues such as fines, license suspension, SR22 requirement and even jailtime. If this happens, you could find it difficult to find affordable car insurance afterward.
Can I Get Insurance After My Car Insurance Policy is Cancelled?
Although it may be difficult to find an affordable policy, you can still be insured after your policy is cancelled. For about three years after your policy is cancelled, it may affect your car insurance rates, however. Insurance providers want to protect themselves from possible losses, meaning they charge more for drivers who could cost them money either by a claim or failing to pay premiums.
If you are struggling to pay your car insurance premiums, be sure to speak with your insurance agent about ways you can save money as well as different payment options. Setting up automatic payments through a draft can help keep you from accidentally missing a payment while asking about discounts can save you money each month on your car insurance.