It's Expensive To Let Your Car Insurance Cancel!

During these tough economic times I have noticed amongst my own clients a large increase in those who don’t make their insurance payment. Although this may help you get through yet another month of paying bills it can also have a very expensive effect on your current insurance rates. In the state of Arizona every Valid Driver License Holder has the responsibility to obtain and maintain automobile insurance. In the event that we go even 2 days with out insurance we will then have to file form SR-22 with the Department of Transportation. The SR-22 (Financial Responsibility Form) is a notice from your insurance company to the MVD that electronically notifies the State when your policy is cancelled. When this takes place your vehicle registration is automatically suspended. By needing to file the SR-22 you more than likely can not qualify for any preferred rates nor will you qualify for a good driver discount despite a good driving record. Not only will you not get preferred rates, many times it is even more difficult to qualify for a standard rate. Many people have to go with a non-standard rate and drop many discounts that they once had.

So if you ever find yourself in the dilemma of not being able to make your auto insurance payment you will be better off at least calling your insurance company to make the appropriate arrangements. Many times they can change what day of the month your bill is due, they may be able to extend your grace period or they may even be able to let you spread that month’s payment over the next 2 or three months. I know for a fact that you insurance company would rather work with you than have your policy cancel.