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By Tammy Gravis

3 questions answered about missing a car insurance payment

The most efficient way to ensure your financial interest in your vehicle is by having auto insurance. This should reimburse you for any vehicle damage you may have while owning the car. However, financial difficulties may arise, and this could prevent you from making a scheduled payment. Having specific questions answered about this situation may enable you to be better informed if you're in a situation of this type.

Question #1: What is the average grace period?

Most insurance companies will grant you a grace period. This is a certain number of days when you will remain insured after the due date has passed and you've missed a payment. Grace periods can be helpful if you've missed a payment.

However, grace periods do vary per insurance carrier, and you will want to keep this in mind. Studies indicate that this amount of time will range from three to thirty days. Be certain to speak to your insurance carrier about your particular grace period per your individual policy.

Question #2: What if you can't make an insurance payment all month?

Insurance companies are in business to make money. This means when you select a certain provider, you agree to pay the insurance premiums as you're required to do so.

If you're not capable of making a payment for an extended amount of time, and this extends past the grace period, you should cancel the policy. Doing so may prevent you from facing steep penalties if you simply do nothing, and this act will be also be appreciated by your provider.

Keep in mind that you will need to acquire insurance from another carrier and this should be high on your list of things to do.

Question #3: How can you make auto insurance more affordable?

One way to help ensure you can afford your car insurance payments and be less likely to miss your insurance payments is by getting the cost down. There are effective ways to lower the expense of your insurance and these are listed below:

  • Increase the amount of your deductible for an immediately reduced insurance bill.
  • Drive an older car that will cost less to keep insured because of the lower retail value of the automobile.
  • Take a defensive driving course that may assist in maintaining the cost of insurance within your price range.
  • Combine your homeowners and auto policies to have the least amount of insurance premiums to pay monthly or annually. Most insurance providers will offer you an extensive discount for giving the company more business.
  • Work to drive within the speed limit and avoid being involved in accidents as much as possible. Having a good driving record will enable you to lower the cost of your auto insurance and make payments more affordable.

It's in your best interest to avoid missing a car payment. However, there are things you can do that will help make this less likely to occur and keep your coverage fully active without suffering a gap in your insurance policy.

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