What happens when you’re late paying your insurance bill?
Timely payment of your insurance bill is essential to fulfill your financial obligation to your insurance company. Your insurance policy is a formal agreement between you and your insurance company, and you must pay your bill on time to maintain coverage.
Here are some common frequently asked questions about late insurance payments.
Q: What happens when I make an insurance payment over the phone or in person?
A: Your agent can collect payment on behalf of your insurance company. If you pay in person by check or cash, your agent must keep insurance payments in a separate account that goes directly to the insurance company. Your insurance agent is not allowed to hold or use your funds except to forward your payment to the insurance company that has your policy. If you call to make a payment by phone, your agent will collect your payment details and make the payment on your behalf directly to your insurance company.
Q: Who am I paying for my insurance, Colby Insurance Group or the Insurance Company?
A: Once you secure a policy, you enter into a contract with the Insurance Company that wrote it. You are responsible for making payments to them directly and on time. Note: you can still call us, and we will take the payment for the Company on your behalf.
Q: How will I be notified if I am late with my payment?
A: Your Insurance Company listed on your policy (not your agent) will notify you by mail or email.
Q: What will happen if my policy cancels due to a late payment?
A: A canceled policy means you have no coverage. If you suffer a claim, you will not have an active policy in force to respond to your claim. To get coverage again, you may need to find another insurance company willing to write the policy with a history of cancellation due to an overdue payment. It’s important to remember that in this challenging insurance market, insurance companies are less likely to reinstate your policy after a late payment cancellation.
Q: Why has my agent decided not to notify me about late payments?
A: With the current insurance marketplace, your agent may decide to eliminate the middleman to ensure that payments are coordinated and made directly to your insurance company.
Q: What can I do to avoid a late payment cancellation?
A: Your agent can help you set up a secure and timely payment method. You have options:
- Set up a transfer from your checking account each payment cycle via ACH
- Set up an automatic payment each payment cycle via your Debit or Credit card
- Pay upfront for the policy term.
- Call us before your payment due date, and we can process the payment transaction for you.
Q: Can I continue to pay by check via the mail?
A: You can continue to pay via mail, but in most cases, your insurance company considers the payment date the date the payment arrives, not the postage date. With disruptions in the postal service and mail taking longer to arrive at its destination, more customers are choosing alternative methods to ensure their payment arrives on time.
We understand how challenging it can be to manage all your financial responsibilities, including paying your insurance bill on time. Your insurance policy represents a commitment between you and your insurance company, and we know how important it is to ensure you’re protected. Late payments can result in a canceled policy, leaving you without insurance coverage.
Remember, your agent is your advisor and can help guide you through your unique insurance needs.
We’re here to:
- Advise you on insurance coverage and options
- Help you secure endorsements and additional policies as needed
- Help you make changes to your insurance
- Help you make timely payments to your insurance company
- Answer your insurance questions
- Help with the claims process
- Manage policy reviews and renewals
- Advocate for you and help find insurance solutions within the insurance marketplace
