Consequences of unpaid insurance premiums
Getting different and affordable offers from insurance companies
Time and time again, people get into financial trouble. A common result are unpaid bills, issued by different creditors. Many people, for example, cannot pay their insurance premiums anymore, something that has potentially very bad consequences. If the insurant does not pay his premiums on time, the ultimate consequence will be the termination of the contract or the cancellation of all possible insurance benefits as long as the outstanding premiums have not been paid. Admittedly, it does not have to become as bad because insurance companies will send a reminder first if a premium has not been paid for.
The customer should definitely react to this reminder and have a look whether he has actually got the respective invoice. It is possible that he simply forgot to pay the invoice, so he can easily make up for his mistake. If the customer cannot pay, however, it can be useful to talk to a representative from the respective insurance company to maybe switch the payment method from annually to semi-annually or even monthly. While it may be slightly more expensive overall, the premium that has to be paid every month is much more affordable than one high annual premium. Additionally, it depends on the type of insurance. If it is a life insurance or something similar that is designed to accumulate capital for the time after retirement, it may be an option to talk to the insurance company and to switch to a non-contributory contract for a certain period of time. It should be done before a reminder is sent, though, to give the company the chance to handle the transition on time. If the insurance in question is, for example, a car insurance, non-contributory contracts are not possible. One has to pay as soon as possible as insurance companies have to send a note to the responsible authorities if some insurant has not paid his premiums. It will definitely happen when the insurance company cancels the contract. Authorities have to make sure that the car in question does not return to the road while the insurance makes a note if the premiums are paid for in the meantime. If that is done, the car will be allowed to go back to the road again. Basically, one should talk with the insurance if premiums cannot be paid for in the foreseeable future. The same is true for any form of health insurance. Unpaid premiums may lead to losing one´s insurance cover otherwise.