What happens if I miss a car insurance payment?


Insurance policies are a requirement if you want to own a car, which means you also have to keep up with the monthly payments. We understand that sometimes at some point, you might struggle with your finances and choose not to pay certain bills to reduce costs. However, when you take that decision, you must know what is going to happen. That’s why below, we will explain the consequences of missing an insurance payment.

What happens if I miss a car insurance payment? This is a question that most car owners have, especially when they don’t have enough funds. The short answer is that failing to process your payment can result in a bad relationship with your insurance provider or even cancellation of your policy. Further, your car will be left without protection in case of an accident. It is important to keep in mind, that in some countries such as Canada, it is illegal to drive a car without proper insurance. 


There are a couple of things that can happen if you miss a car insurance payment. But, first, we will take a look at what you can do if you don’t have the funds to pay your bills.

Make your car insurance payments affordable

Once you start thinking about a car, the best thing you can do is ask for quotes from several insurance providers. In an ideal case, you should choose the one that gives you the most coverage which will probably be the most expensive. In case you don’t have a stable financial status, look for the one you can afford, and that has basic protection. If you don’t know where to find the top insurance policies, check out Surex.

If months after you purchase your insurance policy, you lose your job. Or there is an unexpected situation such as a global pandemic. Don’t panic. There are still ways in which you can make your monthly payments affordable.

  1. Less coverage

Talk to the insurance companies and find out how can to lower the coverage. When you do this, your monthly payments will also reduce. If you can’t lower your coverage, you still have the option of raising your deductible. This will cut down the payments of your monthly premium. If you choose the latter, we recommend only doing it for a few months. Because, in case of an accident, you would have to pay the higher deductible.

  1. Find a new insurance company

Even though this option could take more time compared to the first one, you might be able to find a good deal. You can start comparing different quotes, and chances are you could find a similar policy to the current one you have, for a cheaper price. If you decide to switch companies, some providers even offer special discounts.

  1. Look for discounts

It may come as a surprise but having a safe driving history, a brand new vehicle or choosing paperless billing can allow you to have discounts. If you want to know which discounts your provider is offering, the only thing you need to do is call.

  1. Bundle your policies

Many people don’t know that if you choose to purchase a variety of policies from the same provider, you can have a significant discount. For instance, you can bundle your home insurance, car insurance and life insurance.

What happens if I miss a car insurance payment?

In the extreme case that you can’t look for ways to make your policy more affordable, or you simply forgot to pay the bill. Here is what will happen.

  1. Warnings

Once your provider gets the notification that you have missed a payment, they will issue a warning. In this warning, they will inform you of the original due date, the amount to pay and how much time you have to submit the payment. Under the law, insurance companies don’t have to give you coverage after you miss even one payment. However, in most cases, providers first will give you a warning before cancelling your policy.

  1. Cancellation

Even though your company can cancel your policy at any time they want to, there are only two cases in which they will proceed. First, if you have a record of not paying your policy on time. Or when you choose to ignore several warnings. Most insurance companies care about keeping their customers. However, if you are bridging them more problems than benefits, they will drop you.

  1. Increase fees

When you miss a payment, your provider will likely charge you an additional fee, which will increase the overall payment. But, this will only be a one-time raise, if you continue to pay on time. In case you continue to miss payments, this could result in higher fees in the future. Further, even if you choose to change insurance companies, they will still charge you a higher amount because you will be considered a risky investment.

Now that we have answered the main question of the article “what happens if I miss a car insurance payment?”. It is time to tell you what to do after you missed it and how to handle the situation.

What to do when you miss a car insurance payment

Below, you will find some steps you can take when you forget to do a car insurance payment.

  • Call your provider

The chances that the company won’t notice that you missed a payment are equal to zero. That’s why when you missed a payment, or you don’t have the funds to make the next, the first thing you should do is call the insurance company. Most of them will help you arrange a payment schedule to help you out. In extreme cases such as the current pandemic, they could forgive you for one missing payment. 

  • Have an emergency fund

We understand that sometimes there could be unexpected situations that empty your main accounts, such as a family emergency, a natural disaster or an economic recession. That’s why you always need to be prepared for the worst-case scenario building an emergency fund that can last a few months. 

  • Set a reminder

If you are the kind of person who forgets important dates, such as when your bills are due, there are a couple of things you can do. First, buy a calendar and put it in your room where you can see it every day. Second, set a reminder on your smartphone.