Insurance is essential when it comes to keeping your belongings safe. Paying for cover means that in the event of any accident or incident you won’t lose out. Some insurance, such as for your car, is even a legal requirement.
What Happens When I Can’t Make My Insurance Payments?
If you can’t or won’t pay your insurance bill, then as standard you will receive letters notifying you of the fact you are in arrears. The insurance company will ask you to pay what you owe to catch up. If you don’t, then your policy will be terminated which will put everything you had protected at risk.
If something like your car insurance is ended, you may be at risk of breaking the law if you continue to drive as normal.
Your policy might just be cancelled with no further charges, but it is possible you will be asked to pay various fees. These might include early cancellation fees, administration charges, or you may be asked to pay the remainder of the month or the initially agreed term.
When Do I Need Insurance?
Insurance is never a bad thing. Not only does the safety net it provides offer some serious peace of mind, but it can save you tens of thousands of pounds depending on the incident it covers. However, that doesn’t mean you always need it per se, according to the law.
However, in the United Kingdom to legally use the roads you have to be covered by an insurance policy. If you aren’t you have to stay off the roads; you’ll receive a fine of £300 and a non-negotiable six points on your license. If the case goes to court, you can get an unlimited fine and even be banned from driving. If you need your car, then vehicle insurance is an absolute must.
Depending on your job, it may be a legal requirement to be insured. If you are a self-employed worker, you might find out that you cannot work safely or lawfully without insurance. It is also worth considering insurance that guarantees a minimum income, as naturally if you fall sick, there is no one to cover you. Other jobs require a relevant insurance policy to work legally.
Paying for Your Insurance Annually
It is possible to forgo paying your insurance in instalments, by paying just one gross sum every year. Once it is paid, you can forget about it until the next time as you are covered for the year. This often works out cheaper than paying it every month so whenever you can, pay once and get it out the way.
What to Do if You Are in Insurance Payment Arrears
If you are finding that you can’t make your insurance payments and the insurance company is approaching you for money they are owed, it’s time to get some help. At Debt Free Life we specialise in guiding our clients out of the financial red and into the green. Not only can we stop creditors from bothering you, but we can reduce your outgoing spending every month by a very significant amount.
If you’re struggling and want to take back control from your creditors and wipe off up to 80% of your personal debt, don’t hesitate to call us on 0800 808 5124 today.