Cancelled policy
- Thread starter david82
- Start date
I am sorry to hear you are going through a rough time. I hope one of the resident experts will answer your questions. However, if the policy was actually canceled (meaning you are not in the grace period), then pay it on Friday, hope they accept payment, and that they "re-instate" the policy.
I am sorry, I can't answer your other questions.
I am sorry, I can't answer your other questions.
whatyouwantfinally
Guru
- 457
Call your agent (or 800 number) right away and see if you can get the policy reinstated when you pay it on Friday. You may have to sign a statement of no loss; meaning you'll have to sign a form saying there haven't been any incidents (accidents, damage, etc.) in the time between the cancellation and reinstatement. If it's reinstated, you're good to go.
If not, you'll have to get new insurance as someone who doesn't have current insurance. You'll pay WAY more because of this, especially if you had continuous insurance for 12+ months when you got your current/lapsed policy. Rates for people who have had coverage are much better than for people who don't.
- 2,204
Great answer above. Its also slightly technically possible that your carrier/state might allow for late payment due to COVID19. Ask your insurer.
He'll pay way more because e of the lapse, correct? I get that. Even if it's only 5 days or less? However, I am not sure I understand, "especially if you had continuous insurance for 12+ months when you got your current/lapsed policy." Thanks.
whatyouwantfinally
Guru
- 457
It doesn't matter how long the lapse is. If your answer to the question, "Do you currently have coverage?" is no, you're screwed.
The point of the 12+ months thing is that many companies have better rates for people who have had coverage for 12+ months (or longer) than for people who are insured but have only had continuous coverage for 0-11 months. So, if the OP got a better rate on his policy due to having a long history of continuous coverage, the new rate he gets as a currently uninsured is going to be a lot higher than he was paying before.
Got it! Thanks!
- 2,265
Reporting is done electronically so the answer to question is immediately. OP does not identify state or carrier so answer about penalties is unknown. Maryland is $150 for first 30 days, Virginia is no penalty, DC,Wv likewise. Carriers have different rules about lapse and reinstatement. Sometimes best solution is to bounce a check, technically fraud but buys time
- 5,796
What about change in payment method... can that be used as a way to get around the late payment?
- 2,265
Might depend on the carrier. I know of one carrier who eliminated that loophole a few years back when they discovered that an employee had not paid premium for 2 years. I DO NOT recommend what I stated. If a paper check is presented to the carrier it has to pass through the banking institution and get rejected before the carrier would know if it was good or not. The policy would be credited with the receipt of premium and a notice would arrive 5-10 days later if the bank did not honor the check (some might and cover it with an overdraft fee). Depending on how he carrier covers bounced checks would determine if and when the policy is still in force, cancelled, or terminated. This won't work for most EFT's or debit transactions. Knowing that there isn't enough to cover the premium is FRAUD. But it can kick the can down the road sometimes
