What to do if you can no longer pay your monthly car insurance in the US

What to do if you can no longer pay your monthly car insurance in the US

In times of economic hardship, it can be difficult to pay your US auto insurance monthly payment. But contacting your insurance company immediately in such circumstances can help you. At Globe Live Media we explain why

For a large part of the people in the United States, not having a car is something unthinkable. But in these times when inflation has reached its highest levels in the last 40 years (although, to be honest, the increase in prices fell slightly during the month of October), it is increasingly difficult to comply with with all the expenses of having your own vehicle, and that includes, of course, the monthly payment of your car insurance.

In reality, your auto insurance premium can go up even if you haven’t done anything to make it happen, like filing a claim, oddly enough.

Unfortunately, unless you live in one of the states where auto insurance is not required, not paying for your vehicle policy is a risk, regardless of whether it falls out of your budget. In fact, it is even advisable to see auto insurance as one of the essential expenses of life in the US.

Therefore, the question is obvious: what can you do if you can no longer pay for your car insurance in the US, but you can not do without your vehicle?

In that case, there is only one option left: get a cheaper policy than the one you have, that fits your financial capabilities. But that doesn’t mean you should simply stop paying on your current policy.

According to specialists, it is best to contact your insurance company immediately in the event that you have financial difficulties that make you unable to pay your car insurance. Timing (or taking advantage of the right moment) is important: if you are honest with your insurance company before falling into default or in arrears, you can probably find a solution.

Depending on your driving record, you may even be eligible for discounts on your auto insurance.

On other occasions, it is recommended that you cancel your car insurance before defaulting, because that way your credit history and your insurance history are not harmed.

To do this, a call to your insurance agent or the insurance company will be enough to stop the renewal of your policy. In some cases, you may be required to pay a cancellation fee and sign an insurance cancellation form.

However, it is convenient that you make sure that the policy has been canceled by calling immediately after having made the cancellation. Some companies require a 30-day notice in order not to implement any type of penalty.