Car Insurance Bill

It is important that you pay your car insurance bill on time and before the due date because if it isn&#39t the consequences can be drastic.

The way it usually works is if you don’t pay, you aren’t covered and your policy could be cancelled. For instance, if you were involved in a collision where you were at fault and you made a claim, there is a chance that your car insurance provider will deny your claim and you may have to pay for any repairs out of your own pocket.

However each car insurance company is different and how they deal with a situation like this will depend on what they state in their policies.

For instance, the below policies on paying your car insurance bill were current at December 2010:

• NRMA: If any installment stays unpaid for 14 days or more after the due date, they may refuse your claim for incidents that take place 14 days or more after the due date. If you haven’t paid your installment for one month after it’s due, they may cancel your policy automatically without letting you know.
• AAMI: Their policy states that if a debit attempt is unsuccessful, they send you one or more notices. They will try and debit your account again during the four weeks after the first attempt. If an installment payment remains unpaid for 14 days or more from the original due date they won&#39t accept any claims. They may also cancel your policy without warning if you haven’t paid for one month or more from the original due date.

Meeting your payments and ensuring they are up-to-date and paid on time is your responsibility. Make sure your car insurance bills are paid or risk not being covered which could ultimately cost you more in the long run.

Here are some tips to ensure you are covered all the time:

• Sometimes it is better to be safe than sorry, so if you are unable to meet an installment, call your insurance provider to notify them. They may be able to organise alternative arrangements or to let you catch up next time.
• If your insurer withdraws your installments directly from your bank account, make sure you have enough money in there. Speak to your insurer to find out when your payments are scheduled.
• If you are having trouble meeting your installments perhaps you are paying too much. compare car insurance online to see if you can find another policy for less.

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