Late payment auto insurance?

Question

What happens If I mail my payment by mail the day before the due date of my auto insurance? Is should be okay as long as it's postmarked before the due date right? Will that go against my credit report? I have allstate. Anyone with similar situation?

Answer 1

Postmarks mean nothing.  The insurer needs to receive it by the due date.  Yours may have a grace period.

Answer 2

If the payment envelope has a postmark on the day it is due, or the day BEFORE the cancellation date, your policy may cancel, but it will immediately be reinstated back to the day of postmark when received by the company.

There's not an insurance company in my state that does not use the postmark as the payment date, when the payment is mailed. This is true, even if the payment is mailed to the agent.

If the agent receives the payment by mail, he/she will load the payment into the computer, and fax or mail the postmarked envelope, keeping a copy for the clients file.

Answer 3

If it's the DUE date, you shouldn't have a problem.  If it's the CANCELLATION date, well, not all companies honor the postmark, they have to actually receive the funds before the cancellation.

Keep in mind, that the cancellation goes into effect at 1201am - one minute after midnight.  So if you put it in the mailbox tonight, and the cancellation is tonight at midnight (tomorrow's date), it actually won't get postmarked BEFORE the cancellation date.

You'lll have to discuss this with YOUR AGENT to see what your company does, in your state.