Why Is It Important To Pay Premiums On Time?

It is very important to pay premiums on time to ensure that you’re insured and stay insured. If you don’t pay your premiums your account will become “delinquent” and may even be cancelled. If you’re having problems paying on time, contact your broker as additional time or alternative payment may be offered. It’s best not to ignore the situation or you may find yourself driving without insurance, which is a serious crime.

If your account is delinquent and your broker is unable to reach you or get a response from you, they have no choice but to cancel your policy. The best choice is to stay on top of your payments and of course contact your broker if anything arises. If you pay your premium with a series of postdated cheques or by pre-authorized bank withdrawals ensure there is enough money in your account each month. If you don’t have enough money in the account and the insurance company cancels your policy, you cannot assume your coverage will automatically be reinstated later on.

Keep in mind that if your account is cancelled there may be penalties when applying for coverage in the future.