Am i insured?

Question

i have state farm insurance on my car and i have it set up so that the premiums are taken straight out of my checking account each month. well things came up and i didn't have the entire amount in my account so when they tried to take out the money, i got an NSF. my question is, will this incident cancel my insurance? what do i need to do?

Answer 1

Yes, it will cancel for non-payment of premium.  Call your agent and see what the cancellation date is.  Either pay the premium so it doesn't cancel or pay the necessary premium to reinstate your policy.

Answer 2

"Most" insurance companies will forgive one mistake but make sure it doesn't happen again anytime too soon. Just follow their instuctions regarding getting your payment out to then as soon as possible. They may reqest a money order or certified cheque with NSF fees added for this payment.

Answer 3

You need to talk to your agent.

What happens next, will depend on your payment history.

Answer 4

This will cause your insurance to cancel if you don't send in a check or call with a Visa/MC to get it paid. Once it's bounced, they won't resubmit the charge to your bank.

Typically you'll have about a 1 week grace period to get it paid before it cancels, but there's many factors that contribute to how long your grace period is. Call you agent ASAP.

And, if you have three of these incidents with in 12 months, State Farm will close your monthly payment plan and you will have to pay 6 months at a time. If you ever think they money won't be there, call and they can stop the withdraw. Those don't count against you as long as you pay your bill on time.

Oh, State Farm does NOT charge a fee for the returned check.

Answer 5

You need to get the full amount of your premium plus any penalty payment into your insurance company immediately. Generally they have a 30 day grace period.

If you didn't purchase your policy through a State Farm Agent, you should find the closest one to you in your phone book and talk to him or her about your situation. Often they can run interference for you with the company.