My Auto Insurance Canceled me for Non Payment When They Didn't Auto Draft My Payment—Why?

It is not an altogether uncommon problem to have your auto insurance scheduled for cancellation due to the fact that your auto insurance company did not auto draft your payment. There can be a variety of reasons for this to happen. It is not always the fault of the auto insurance company if the draft doesn’t occur; then again, sometimes it is.

Number One Reason an Auto Insurance Premium is Not Auto Drafted

The number one reason an auto draft doesn’t go through is because there is a lack of funds in the account. Your auto insurance company considers it your responsibility and if the draft doesn’t go through, they may cancel your policy or schedule it for cancellation. To avoid this, make sure you know when the draft is to go through. It should be the same date each month unless that date falls on a weekend or holiday. Understanding when the draft will occur in all instances is your responsibility. If possible, have the money in the account a couple of days ahead of the draft date.

Other Reasons an Auto Insurance Premiums is Not Auto Drafted

Another common reason for the auto draft not to go through is if the auto insurance company has the wrong account number and routing number. This could be typo or a miscommunication, but it will certainly keep the premium from being paid. If you have the auto draft attached to a credit card, you could be at your credit limit. Also, if your credit card has expired and you have not updated your account with the new card, the payment may not go through.

Get in Touch with Your Auto Insurance Company Immediately

Now that your insurance is cancelled, you need to rectify the situation immediately. Driving without insurance can get you in a lot of trouble—legally and financially. Call your auto insurance company immediately. You may be able to make an over the phone payment and get your coverage re-instated on the spot. They may also be able to help you diagnose the problem. If you did everything in good faith, it is possible there will be no repercussions.

Should they Cancel Your Auto Insurance for Non Payment

With most insurance companies, there is usually some leeway in the dates for premium payments. That is, if the payment doesn’t go through, you’re insurance will not be canceled immediately. You will probably get a phone call or email stating the payment was rejected. You then have a certain period of time to rectify the situation. If your auto insurance company cancels your policy immediately, you should fight it. In fact, you should probably being looking elsewhere for your auto insurance.

Compare Auto Insurance Premiums to Find the Best Deal

Having your insurance cancelled for something that is not your fault or having it canceled without any chance to rectify the situation can lead to a myriad of problems and leave you with a bad taste in your mouth. You may want to look around for a different auto insurance provider. If you haven’t shopped for auto insurance recently, you may find that shopping around will give you the chance to not only find better service but lower car insurance rates. You can use our free rate quote tool to search for the best rate among the most reputable auto insurance companies. Get the service you deserve and the best rates at the same time!

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