We all go through times of financial strain and paying all our necessary obligations is difficult, including our auto insurance. No matter how cheap car insurance you have, that payment can be difficult. Some people will go ahead and write a check for that payment, but then when the bank rejects it, they not only have bank fees, but their auto insurance is in jeopardy of being canceled.

In most cases, insurance companies notify the policyholder of the return payment or that they haven’t received a payment at all. They offer a grace period to get the payment made, which will usually include a late fee. For most states, this is a legal requirement that all insurers must give clients notice. They can’t just cancel your policy without giving you the opportunity to make right on the matter. The time frame can be anywhere from 7 days to 30 days.

What if you still can’t make your payment by that time? Then your cheap auto insurance policy will be canceled and the insurance company will notify the state DMV. This can often cause your driver’s license to be suspended, your auto registration revoked, and in some states, your car could be impounded.

Therefore, it is important to put your cheap car insurance payment at the top of your “must pay” list of bills. If you’re finding it difficult to make your payments, perhaps a call to your agent and discuss what you can do to lower it, such as increasing your deductibles or dropping some of the coverage altogether.