We all can struggle with finances from time to time. Unexpected repair bills, medical bills, and the everyday costs of life can really add up, leaving us with hardly any extra for spending. Have you ever had to consider not paying one of your bills on time due to lack of funds? While this can be a difficult decision, it’s always important to be sure your insurance premiums get paid on time…period!
The reasoning is simple – your property and casualty insurance is protecting your most valuable assets and prized possessions. It’s also the protection for yourself in the unfortunate event you’re responsible for paying for someone else’s property damage and/or bodily injury. If you don’t pay your premiums on time, not only can you be left without insurance for your assets and your legal protection, but you may also have a hard time finding coverage elsewhere.
Take this story as an example. A few weeks ago, a friend called me and was frustrated because her insurance carrier would not cover a claim for her stolen (and very expensive) bicycle. My first thought was why not, but she explained it was because she had been a few days late on paying her bill and the bike was stolen during that time. Her carrier declined to honor the claim after her policy had been canceled for non-payment of premium. So not only was she stuck with having to replace the cost of the bike 100% out of pocket, but she was worried that she would have a hard time finding coverage with another carrier. Unfortunately, there wasn’t much advice I could offer, other than in the future she needs to be certain her premiums are paid on time.
When reviewing applications for insurance, most carriers can look back at an individual’s history and evaluate not only prior claims but lapses in coverage that could indicate a policy was canceled due to non-payment of premium. What could this mean for you? Higher premiums! Even if you end up paying your premiums late, you may ultimately end up with a higher insurance bill because you weren’t paying on time.
Paying your insurance premiums on time should be a top priority. If you’re struggling with the best route to ensure payment or how best to pay your premiums, contact your independent agent or insurance carrier. Most carriers can set up automatic payments or account withdrawals that will make it much easier to be certain you never get caught without coverage!
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