We're posting this piece as a warning about the importance of paying your insurance renewal payments on time.
They are due a day earlier thank you think! (Explanation below)
Given the current circumstances in California, this is of the utmost importance to preserving your policy and premium rates!
Unfortunately, in California today, insurance carriers are quick to use unpaid premiums as a reason to cancel your policy. So missing the payment due date on your renewing policy (regardless whether you're paying in full or making installments), could be disastrous. Due earlier than you think: All policies are written to end at 12:01am on the date of expiration. That means the payment for your new policy term must be received by 12:01am or the payment is "late." If your payment isn't recognized until the start of business that day, you would have technically missed the deadline by possibly 6, 7, 8 hours. If the insurance company is looking for a reason to cancel, they've got it. “POSTMARK DATE IS NOT HONORED” Most carriers are no longer accepting postmark date, only the date they actually have the payment in their hands!!!! If this "late payment" scenario happens, the company is not required to reinstate when your payment arrives. If your policy is canceled and the carrier won't reinstate it, your agent will need to hunt for a new carrier willing to cover your property. Unfortunately, this is becoming increasingly difficult, as there are very few carriers willing to write policies in many parts (or all) of California. Even if your agent manages to secure a new policy for you, it's highly likely the premiums will be significantly higher than those of the policy you just lost. To avoid these complications, ensure your payments are made on time (at least one day prior to the policy expiration/due date!) To this end, we also encourage you to schedule online banking transactions to arrive at the carrier well before the due date. Any errors (including those beyond your control) in delivery date to the carrier could jeopardize your policy. We are seeing too many customers caught in this terrible scenario. They're ending up with higher premiums and/or lesser coverage as a result. |
So please be vigilant about hitting payment due dates. |