Dallas, TX (Vocus/PRWEB) February 09, 2011
With the price of car insurance on the rise in some parts of the country, a growing number of consumers may be looking for ways to diffuse the financial strain that comes at the beginning of a six-month or annual coverage period. Rather than paying in one large, lump sum, policyholders may want to consider opting for low down payment auto insurance with monthly billing. But as the writers at OnlineAutoInsurance.com point out in a new FAQ, agreeing to pay a set portion every month can have a number of downfalls if the policyholder begins missing due dates.
Some states like Texas don’t consider monthly billing as an option but rather as a right. Texans are actually entitled by law to break up premiums into installments. But what some of the people who choose this option may not know is that in most states auto insurers are not required to allow for a grace period for late payments. That means that if the insurer doesn’t have a policyholder’s premium by the due date, protection will cease.
This abrupt break in coverage has been shown to have further repercussions.
First of all, an insurer that chooses to issue a new policy to a driver who has had coverage cut off because of late payments is likely to remove any loyalty or continuous-coverage discounts that may have been in effect before.
Secondly, the now-uninsured driver is more vulnerable while on the road because he or she will have to pay on their own for any damages that they cause to other people or cars during this period.
Additionally, insurance verification systems in some states may notify the department of motor vehicles immediately when coverage is cut off, and some drivers have reportedly had to deal with costly and time-consuming penalties associated with the lapse.
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/pay-monthly/ where they can access informative resource pages and a quote-comparison generator that can help expedite the process of finding an affordable policy. Visitors can find the full FAQ by clicking on the “Questions” link at the top of any page on the site.