I have a friend who's in a bit of a bind. Her boss hasn't paid her in almost two months and her auto insurance payment is due tomorrow, and if she doesn't pay, they'll cancel her policy (she's with Progressive). She only has like $5 in her checking account, but she authorized a payment ($105.50) hoping that her bank will honor it. Do you think they will? Don't most banks usually just let a payment or transaction go through so they can charge an overdraft fee? If not, if Progressive does cancel her policy, can she renew with them when she has the money? Or must she go to a different company? Is this possible lapse in coverage a bad thing? Thanks for any help!
Geez, you sound like me...DH's boss doesn't get in a hurry to pay him - feast or famine in my hhld. My bank has let some stuff go thru for me, but then I have been with them for almost 8 years. It depends on so many things.... Of course a lapse in coverage is bad, especially if she is driving without insurance. During the great fallout, my coverage with Allstate lapsed, and they wouldn't renew me. What I learned, is if you do have to go out and get a new policy, any lapse over 30 days makes it a nightmare. Farmers happened to have a company that allowed for 60 day lapses, but I paid out the nose for a while.
For more discussions on car insurance read this thread. http://consumers.creditnet.com/stra...php?s=&threadid=55284&perpage=90&pagenumber=2
If you are canceled for non payment, many companies will reinstate you, but it depends on a lot of things like your claims history. I got non-payment cancellation notices for a while (if I didn't pay by a certain date I'd be canceled). I always managed to get it in by the date, but they ended up making me pay in full in advance for about 2 years. If you are in a mandatory insurance state, a lapse in coverage will trigger a notice to the MVA (or DMV or whatever it's called in your state). Then you may face penalties from the state for not having insurance on your car. Contrary to what lbrown59 thinks, if it's a mandatory insurance state, if you have tags on the car you must have insurance on the car. If the car is financed, the finance company requires you to have comp and collision as well. If they get a notice from the insurance company that your insurance has lapsed, they will buy a policy (and believe me, it will be expensive) and add the cost to your loan, making your payments higher. As far as the bank paying it, as jlynn says, it depends on the bank and your history with them. My bank has paid quite a few over the years (not recently, though). My suggestion is to borrow some money short term and make sure the insurance gets paid. If not, it will cost you a lot more in the long run.
Contrary to what lbrown59 thinks, if it's a mandatory insurance state, if you have tags on the car you must have insurance on the car. Hedwig ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> I have 6 cars 4 of them don't have Lib. Insurance - It's never been a problem because I don't drive without it.
Contrary to what lbrown59 thinks, if it's a mandatory insurance state, if you have tags on the car you must have insurance on the car. Hedwig ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> I just don't see the object in insuring cars if they aren't taken out on the road.
That's fine, as long as they don't have tags on them. Hedwig ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <> IF a car is not out on the road what makes the difference wither or not it has insurance or plates on it ?????????????? Stiffen the penalties for taking a car out on the highway without insurance but leave it alone if it's not out on the road.
