Oops, I Missed A Payment

If you miss a payment on your insurance, it’s not like missing a hydro payment. There are serious consequences. Your insurance rate will increase, or you may be canceled. A cancellation for a non-payment will affect your rate, and remain on your record, for 3 years.

Some provinces and states have laws governing the conditions by which the insurance company can proceed with the cancellation of your policy. In the province of Ontario, for example, you will be given a warning notice that your policy is "set up for cancellation". If you’re on a monthly payment plan through your bank, a good strategy is to get overdraft protection. Think of it as "insurance" for your insurance.