What to do if you’re late with a car insurance payment

Category: Cars


If you missed a car insurance payment, you can face some serious consequences. Depending on how late the payment is, you risk losing your auto insurance policy altogether. If you were late with your most recent car insurance payment, the following are steps to take that can help you from losing coverage:

Reach out to your insurer

Your best chance at retaining your car insurance policy is to reach out to your insurer as quickly as possible, explaining why you missed your payment. If possible, make your payment immediately. If you are still unable to, explain your situation. You may receive a grace period and could potentially have more time to send in your payment. However, even with an extended due date, you may still face other penalties for missing a payment; many insurers will impose late fees for missed car insurance payments.

Explore other payment schedule options

You may have the option of either making smaller monthly payments, or two biannual payments. Although the larger payments every six months can save you more money and be more convenient, the large payments can sometimes be difficult for some to come up with. On the other hand, having a monthly payment—even if it’s a smaller amount—might be too much to handle on top of your other monthly bills. Whatever your current payment schedule may be, ask yourself it makes the most sense for you and your financial situation. If not, find out about switching to a different payment schedule. It may not help you resolve your current missed payment issue, but it could prevent it from happening again in the future.

Set up automatic payments

Sometimes, consumers miss their car insurance payments because they simply forget about them. They may have missed the statement and forgot about the payment due date, which can be especially easy to do if you only pay twice a year. If this happened to you, tell your insurer and make your payment immediately, if given the chance. Additionally, ask if it’s possible to enroll in automatic payments, so that your bank account is debited automatically for the payment amount whenever the due date rolls around. This way, you won’t have to worry about forgetting any other future payments.

Look into short-term coverage

If your car insurance policy was terminated as the result of a missed payment, you’ll want to look into short-term insurance while you shop around for a new policy. Reapplying for coverage again and comparing rates can take some time, so you don’t want to completely go without car insurance in the meantime. Short-term insurance can help bridge that gap until you receive regular coverage again.

Do you need extra cash to catch up on monthly bills that have accumulated? If you’re receiving long-term payments from an annuity or structured settlement, Peachtree Financial Solutions may be able to help. Peachtree can buy some or all of your future payments and provide you with a lump sum of cash. Contact Peachtree Financial Solutions today to learn more about your options and to receive your free quote.


Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.

Tags: automatic payments, Bills, car insurance, insurance

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