Auto Insurance Declined Coverage Due To Late Payment

Reader’s Question:

My daughter was driving my car last week when she got into an accident. She just suffered from minor injuries however my car was determined to be totaled. On the same day that this happened, I made a payment for my auto insurance premium. This was after the due date on my insurance bill. When I informed my auto insurance company about what happened, they declined to cover the damage on my car. The reason they have given me is because I paid my auto insurance bill late. Can they do that? Is it legal to do that? I am from Baton Rouge, Louisiana.

Sabrina

Baton Rouge, LA

I am deeply sorry for what had happened Sabrina. I hope for your daughter’s speedy recovery.

Going back to your question, auto insurance bills are not like utility bills wherein you may be given a grace period before it gets cancelled. In general, auto insurance policy is cancelled if no payment is made on the due date itself or on the date listed on the bill. So I guess that is what happened to you. And yes, it is legal. Auto insurance companies can cancel a person’s policy if he or she failed to make a payment on time.

I would suggest you better practice making a payment on time to avoid this from happening again. For more information about auto insurance you can ask you car insurance agent in Baton Rouge.