If I dont pay an automobile insurance payment will it affect getting insurance in the future?

Question

Im not sure why I owe this insurance company $75, but I blew it off since they didnt notify me until my policy had ended. Now Im recieving letters from a lawyer attempting to collect. I understand if I dont pay it that it will affect my credit score. Besides the dent in my credit, will the unpaid payment deny future insurance with another company.

Answer 1

It's probably a cancellation fee.  Eventually it will go to collections.

Some states (Massachusetts comes immediately to mind) has a provision on their policy that asks if you own any carrier any premiums, and they'll deny your application if you say yes (saying no is material misrepresentation, if you owe, and grounds to cancel your policy and deny all claims).  

So, it depends.  At the very least, having a gap in coverage 30 days or more, WILL put you in high risk, and some carriers won't take you just because of that.

Answer 2

Possibly...they may figure since you didn't pay what you owed in the past, you won't pay in the future (I'm not saying that you owe the money or anything like that....just giving you a future insurance company's perspective)

Have you tried calling the insurance company and asking why they say you owe the money?  Perhaps they will work with you.  Creditors would rather work with people and get paid a little something than go through the hassle of collections and getting zip.  (Most companies anyway.)

Answer 3

If you have really good credit, why mess it up over a measly 75 bucks.......

Sure it sucks....but credit issues follow you for years........

Check why this is....then pay it.

In today's current financial atmosphere companies want their money, and will make the attempt to get it.

More companies check on credit and payments than you would ever believe......it is a good measure of ones character.

So, be seen as a responsible paying person, or as a slacker.

BTW, any future employer can look this up on your credit record......and keep you from getting that dream job.....because they'll see that your character doesn't measure up to what your resume says.

Answer 4

You bet it will!   Your best recourse is to get in touch with the company and try to work this out to the satisfaction of you both.  It is going to cost you a lot more than $75 by the time this whole thing is over unless you work something out with them.

Answer 5

$75 is not enough money to risk getting slammed with non-standard insurance rates in the future. Contact the attorney, ask him or her to get you a written explanation of what the $75 is for, and pay it if you owe it. If you think you don't owe it, provide documentation that supports your position, and maybe it'll all be taken care of. Ignoring the problem will almost NEVER make it go away. Trust me, it's best to deal with this one now instead of later.

Answer 6

Yes. In most jurisdictions insurance companies will check with your previous insurance company and so will become aware of the unpaid amount. It will then have an impact on your premium.

It is $75 just pay it.