Here’s a cautionary tale that shows why you should always make your insurance payments on time. The consequences of being late can be horrendous.
Use post-dated cheques, a credit card or preauthorized payments from your bank account. Being late, even if only a few days, can cost you plenty when you renew the policy.
And if you switch insurers, you may be cut off by the new company once the information is disclosed.
William wrote to me to describe how he was blackballed when trying to switch his car insurance. If he didn’t get coverage, he could lose his leased car and his job.
He was surprised to find that he was classified as high risk after being late with two payments in two years, never by more than a week.
Yes, I know that he can get car insurance from the Facility Association, the insurer of last resort, but the rates can be sky high.
Here’s his detailed letter below. Insurance buyer, beware.