This can be confusing for many insureds. The car insurance bill – if not read carefully – can be confusing especially in Massachusetts where there is a long List of Mass Auto Insurance Companies.
If you are paying your insurance automatically by your checking or savings account – you will not receive a monthly bill. You will get a one time statement showing when the deductions are and how much they will be.
With this method you just need to be careful when you make a change on your policy. Add a car, change cars, move to a new town – all these can effect your monthly payment – so after you make a change ask your agent – “how will this effect my monthly payment”? and they should be able to assist you.
If you are paying monthly in cash, check or debit card – this is a different situation. here it is important to review your bill each month.
The insurance company will send the bill typically 30 days before it is due. It will say the amount due and the due date – simple as that – if you pay this on time – you will have little if any billing issues.
If you, again, make a change – like add a car, change cars, add a driver or change towns – it will effect your price. Sometimes the insurance company doesn’t have enough time to update your bill based on your change – this is where the problems can begin – the customer pays the amount on the bill – which does not reflect the change – then come next month the bill is even higher because the change difference was not paid.
This is why it is very important to discuss with your agent any change in premium caused by a change on your policy.
If you do not pay your bill by the due date – insurance companies typically give you a “grace period” – of anywhere between 3-5 days. If the payment is not received after this time – the company will send you a double bill. This is where people start to get behind on their bill.
If this is not paid then you would receive a “cancellation notice” which will be even higher – just trying to get you up to date – and this must be paid within 21 days – or the insurance is cancelled.
So you see there is a process. All the problems can be avoided by paying your regular monthly bill on time and opening your bill each month to understand when it is due and how much is due.
Understanding your car insurance bill is very important. If there are any discrepancies in your bill or if you have further questions simply contact your agent.