There will be repercussions if you repeatedly fail to pay your insurance premiums on time. While each insurer’s policies for consecutive missed payments may vary, here’s what will usually happen.

Initially, your insurer might charge you late fees or penalties. After multiple unsuccessful attempts to process payments though, your insurer may defer the missed payment to the following month, meaning you will have a double payment to catch up, alongside accrued fees. Be careful as this can all add up fast and exacerbate financial difficulties, especially if payments continue to be missed.

Consecutive late or missed payments may lead to more severe consequences, including the insurer automatically canceling your insurance policy. Once canceled, reinstating your policy or even obtaining coverage elsewhere may become challenging. Not to mention, the interruption in coverage can leave you vulnerable and entirely financially responsible for all risks.

To prevent this from happening, always ensure that sufficient funds are available on the designated withdrawal dates. If you’re unsure of your designated withdrawal dates, you can find this information in the payment schedule portion of your policy documents.