What happens if your auto insurance gets canceled because you couldn't make the payment?

Question

I have Esurance and I live in Florida where it is required to have car insurance. The policy is for 2 cars (mine & my husbands) and I can't afford the payment of $460 right now, which is due on the 13th, otherwise, they will cancel my policy. They can't give me any extensions.

What happens if the policy gets canceled? How hard is it to reactivate it again? Is it harmful go have a lapse in coverage for a week or two (hoping of course that there are no accidents during this time). Both cars are financed and the finance companies require insurance as well...

How bad will this s***w me up? Has this happened to anyone? What did you do?

Any advice would be great, and please don't tell me to just pay the bill, because I can't right now and it really sucks. I hate being broke.

Answer 1

If at all possible, don't let the policy lapse.  FL is a mandatory liability insurance state and you don't want to take the chance that you have an accident.  Get someone on the phone and see if they can make an exception for you with a partial payment, just enough to extend the paid to date on the policy past the cancellation date with the promise to pay the rest by a future date. (This will automaticly extend the cancellation notice and allow you more time.)  Keep in mind it cost more for them to start up a new policy than it does to keep an existing customer and if they are a good insurance company, they should be willing to work for you, especially if this is the first time you've asked.  This may be a good time for you to start shopping - either on-line or over the phone.  You may be able to get a lower price for coverage with another company that offers better payment plan options that work within your budget.  They are out there.  Keep in mind, normally the initial down payment is a little higher to get the policy started but if at all possible, you could use a credit card which would defer the payment for you. Shopping on line cost you nothing but your time and will give you some ideas for cost.  But when your serously considering a company  talk with an agent before making any decisions so that payment options can be explained thoroughly.  You may find that even if the cost is a litte more, the company may offer you better payment plan options.  (Try GEICO)  Good Luck!

Answer 2

depends on the officer

if they are nice you may be able to have someone tow the car(using a tow dolly) within like a few(2-24) hours

if not your car will be towed and impounded

either way your looking at a fine and possible jail time, not to mention that you will have to pay damages to the  other parties  car (your fault or not because you shouldnt have been on the road) but if they are hurt you will have those cost also(general national answer)

either figure out a alternative or get rides until you can afford the insurance or dont drive the car

talk with your insurance and see if there is a way that you can downsize the coverage or group  or if there is a program available(rare)to help with payments

goodluck

Answer 3

Most insurance companies have a grace period, a little extra time to pay. However, you could ask them to put your policy on hold, of course you would not be able to drive and the cars   would have to be garaged.

Answer 4

Bad things will happen. First, the lien holder on your vehicles will be notified that the vehicles are no longer insured. This could void your buyers contract. If you get stopped while driving, the info will be on the officers computer, and the vehicle will be towed. You could also have your license suspended, without notice, and end up with two tickets (insurance and license). If you get a "full" cancellation, you may end up needing "high risk" insurance for 3 years which is quite expensive. Do anything you can not to let it lapse.

Answer 5

Your insirance agency will report non payment and they will suspend your drivers license sadly.  With the new laws in our state, they are required to report you.  

You can get new insurance right away by searching the internet for new quotes that may be cheaper then what you have been paying, such as Geico.com or Progressive.com.

Answer 6

In Florida, insurance companies are required by law to tell the state when someone's insurance gets dropped (for any reason).  At that point, the state will suspend your driver license and you will not be able to drive again until you either get the situation resolved.

Answer 7

If a cop stops you while you have no insurance it will be a big fine.

Your finance companies will be notified and they have the right to purchase insurance and add the cost to your balance owed. It won't be cheap and it only covers them, no liability.

If you have an accident while uninsured how will you pay for it? You could be sued big time.

It may be difficult to reinstate the policy.

I know you said you can't, but I would try to find a way to pay it.

I hope it works out for you.

Answer 8

First of all, I have been in this situation. And let me tell you...it DOES suck. If your policy gets canceled then they will continue to send you bills. If you do not pay your bill (after 3 bills), they will demand the total due and any non-payment fees or late fees. If you don't pay that then they make a claim with a collection agency. To reactivate you must pay the past due amount plus a reactivation fee, which can be costly sometimes. You could get away with a lapse in coverage, as along as you are not pulled over. If this happens your car will be towed and you will have to pay impound fees and get insurance on the vehicle before you can drive it again. And you may have to go to court, depending on your state laws. So as you can see this could s***w you up and end up costing you more money then it's worth in the end. When this happened to me, I drove carefully for the few weeks I could not pay and then I received a letter in the mail saying the DMV had been notified I didn't have insurance. And that it was a class act misdemeanor and that I had to have proof I had insurance. So I went out and reinstated my policy. It's up to you! Good Luck!

Answer 9

Usually there is a small re-instatement fee to get the policy back up and running...i think mine is 15 bucks.