What happens if I miss a car insurance payment?
If you’ve got a DirectDebit set up but there aren’t sufficient funds in your account at the time, you should contact them directly or make a payment online. Let your bank know you’re doing this otherwise you could end up paying twice if your insurance provider also retries. Sometimes you’ve got a bit of a buffer when it comes to missed payments – for example your insurance provider may just ask that payment be made within a few days of the original payment due date.
The consequences of a missed car insurance payment are twofold. Firstly, your provider can cancel your cover on the grounds of non-payment. This will mean you’re not insured to drive – which is (and we’re sure you don’t need us to tell you this) a legal requirement.
Secondly, missed insurance payments (or any payment) are noted and can stay on your credit report for up to six years which can bring down your score. Having a less than good credit history means that you could struggle to find a loan, credit card or mortgage in the future; so it’s imperative to keep payments up to date.
Also be aware that you could be charged late or failed payment fees and if you default on several payments you could end up paying more in admin costs as your insurance provider tries to recoup their money.