Default On Auto Insurance

by Hayley
(Seansea)

I am an additional driver on my fathers insurance policy but I pay for the insurance from my bank account. I recently missed a payment and the insurance provider issued a default notice. As the insurance is in my fathers name will the default be issued to him or will it be issued to me?

Reply from DebtCollectionAnswers.com:

Auto insurance is not our area of expertise, but we'll speak from our personal knowledge. When you fail to pay insurance, the policy is typically canceled and you are uninsured from that time forward. They don't usually send it to collections because you pay for insurance in advance. In other words, you probably don't owe them for past coverage but you're going without insurance going forward. (That's a very risky thing to do. Trust us on that.)

In addition, if there is a loan on this car, the lender could place forced placed insurance on the car which you'd have to pay with your car payment. That insurance is usually very expensive and not a good option.

However, I think your question is whether your failure to pay your portion of the premium cancels your father's insurance too, and we don't know. We don't know enough about how the policy is structured.

Call the insurance company asap. Ask them. See what you can work out to get the policy reinstated. If you can't afford it, stop driving your car and shop for affordable insurance.

Hope this helps!

Comments for Default On Auto Insurance

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Nov 14, 2015
Beware re car insurance
by: Anonymous

Some car insurance places (like AAA) will bill you even after your policy expires! They claimed after I cancelled mine that I owed another month. I held out and they backed off.

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