What Happens If You Don’t Pay Your Car Insurance – Options Available To You
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When selecting car insurance, it is important to select a cover that suits your needs and that is within your budget. It is a good idea to check out different insurance providers in order to find out the products they provide.
Before you sign the insurance contract, it is important to read through the policy document and understand the contents. You should also carefully go through the product disclosure statement so that you can understand what the terms and conditions of the policy are. You will also get to know what happens if you don’t pay your car insurance.
Inability to pay a premium
It is possible to find yourself in a rough patch financially to the extent that you are unable to pay the premium for a particular month. If you go to your insurance provider and say, “I can’t pay my car insurance this month”, your car insurance is likely to be cancelled on the due date if you do not pay your premium.
Car insurance is different from life insurance which gives you a grace period to pay the premium if you are unable to pay on the due date. Unfortunately with car insurance there is no grace period.
If you are at the point where you are saying, “My car insurance was cancelled for non-payment,” then there are a few things you need to keep in mind. If you drive your car and your car insurance has been cancelled, you can be penalized by the police and your license can be suspended. Your best option would therefore be not to drive your car and keep it parked in your driveway or a private parking. The car should not be parked on a public road when it is not registered.
Driving without insurance
Is it illegal to drive without car insurance? Yes, it is illegal to drive without car insurance. The Compulsory Third Party insurance, also known as Green Slip or Transport Accident Charge is a must for all drivers.
In some States, this insurance is included in the registration fee of your car. This insurance covers the persons you may injure when you cause an accident. These persons could be other drivers, cyclists, pedestrians or passengers. This cover is for injury or death of the other person. If you are asking, “I can’t afford car insurance, what should I do?” You should not drive if you do not have insurance which means that you would have to wait until you can afford car insurance in order to drive your car.
Self insurance refers to a system used by companies. In this system, the companies acquire a license that allows them to compensate workers from their own funds rather than pay premiums to a workers’ cover.
This can also apply to car insurance where you opt to have a higher amount of excess in your policy. Excess is the amount of money that you have to pay when you make a claim and the insurance company will pay the balance of the claim. Normally, a higher amount of excess on your policy will mean you will end up paying lower premiums. This is how to self insure your car.