Did you know that not paying your monthly premiums on time can have a negative effect on your policy?
In some cases, midterm cancellations can affect your future rates and acceptability for certain carriers. This is why it is so important to pay your premiums on time. Some carriers will give you a more competitive rate if you have great financial responsibility and prove that you can and are willing to pay the premiums on time.
Letting your insurance policy, especially trucking policies, go into cancellation midterm for nonpayment, has many negative side effects. It will cost you late fees and can even cause your Motor Carrier Permit to be suspended. Once a 35-day notice of cancellation is issued on your trucking policy, most carriers also notify the DMV, which will suspend your Motor Carrier Permit until it is paid and the paperwork to have it reinstated is received and processed by the DMV, which can take two to six weeks, depending on how backlogged the DMV is.
To ensure you avoid late fees and possible interruption of your Motor Carrier Permit, ask your Agent or Customer Service Specialist about getting your policy setup for automatic payment withdrawals. This will save you money and headaches in the future.