It’s not unusual for policyholders to fall behind on their annual commercial truck insurance policy premiums. People tend to delay paying dues until the last minute. Surveys even indicate that 46% of the general American population have a bad habit of paying their bills well past the due date. However, truckers should know that failing to make payments has several consequences.
Commercial truck insurance providers often charge policyholders a penalty of around $15 for every day of delay. Furthermore, the policy will continue accruing charges until the dues are settled. Although insurers impose daily fees, they also provide grace periods. This leeway allows truck insurance policies to continue providing liability protection despite payment delays.
Payment delays will automatically result in coverage lapses. For instance, if your annual premiums were due on the 15th and you plan to pay on the 20th, your policy will have a five-day lapse. Thankfully, most insurers allow short grace periods in between renewals.
Apart from coverage lapses, delays in premium payments can also:
Let this quick guide serve as a reminder of why you should strive to pay your truck insurance premiums on time. Delays not only lead to penalties, but they also compromise your company’s liability protection. Avoid leaving coverage lapses. Remember that while insurers provide grace periods, they also have the right to reject claims from delinquent clients with unpaid premiums.
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