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A Few Words About Payments
As most people today know, credit
history is a big deal when it comes to getting the best
insurance rate. So, it stands to reason that your
insurance premium payment history
would also be looked at critically.
An insurance company's ability to cancel a policy once
it is fully in force is very limited. There is no
question: if you fail to get that payment in on time,
your policy will cancel.
And, what if you have an accident before the company
receives your payment? You will not have coverage.
Insurance companies no more want to cancel your policy
than you want it canceled. The only way an
insurance company can manage the tens of thousands of
transactions
experienced daily is with the help of automation. The
computer is non-judgmental. There is no one there to
look at how long you have been insured with the company,
or how good your claim history has been. And, every time
a cancellation has to be sent out, there is an
associated cost. Then when you do pay late, there is
additional cost to reinstate the policy.
These unnecessary transactions are much like small
claims. Companies are increasingly taking a dim view of
late payment cancellations and frequently are
refusing reinstatement.
It is good practice to pay that premium upon receiving
your premium notice. Insurance companies have so many
payment options available that, you should have no
problem find ing a plan that will work for you.
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