Midnight, it’s just not important to Cinderella – your insurance coverage could be cancelled!
So, you are late making your insurance payment and you receive a notice of cancellation. You make note of the date, realize that it may not take effect for a week or two, setup a reminder on your phone and go about your day. Suddenly one evening, your phone alert goes off, you realize your insurance payment is due the next day and you plan to call your payment into the company the next morning. Everything is fine, right?
Wrong! In general, most insurance policies will cancel at 12:01 am on the date listed on the notice. So, your coverage would be cancelled and no coverage would be afforded under the policy should you have a loss prior to the company receiving payment. In most cases, the company will accept your payment and reinstate the policy with a lapse of coverage from the cancellation time until payment is received.
This is a situation you should avoid at all costs whether it’s your California auto insurance, Anaheim home insurance or even a simple boat insurance policy. Almost every insurance carrier has an online platform to take payments 24hrs a day so make that payment before the due date. You can also setup automatic payment programs to make your premium payments to avoid this situation as well.
If you have questions about your insurance or would like to review your current coverage with one of our agents, please give us a call at 714.937.1500. You can also contact us online at www.hma4ins.com