Is it Hard to Stop My Automatic Car Insurance Payments?

Should you go on automatic payments or not? I have this question all the time.

Automatic payments are great for individuals that have a checking account and have regular paydays. You pay a lower billing fee (yes there is still a billing fee). You don't have to worry about whether you remembered to send it in, log onto the insurance company website, and you don't have to call your agent to make your payment.

However, if you have troubles in your account, or you don't want to renew with the company you are currently with, you have to give the insurance company notice. Otherwise, the instructions to withdraw the premium will have already been sent to your bank, and no one will be able to stop it. The stated length of time they need is 10 days. So be aware.

Give us a call at Pulse Insurance in Gresham Oregon – 503-489-3143 or stop by at 4239 SE 182nd Ave in the Powell Vista Shopping Center.

I Thought I Had a Grace Period at the Renewal of My Auto Policy.

When customers reach their policy renewal date two things happen in many cases:

First, they don't realize that they have no grace period on the renewal premium. Sometimes, customers get accustomed to paying a few days late, and simply pay the late fee with the premium. While not the best situation, this works for them. However, when the 6 month contract between the insurance company and the policy holder is over, IT IS OVER! The insurance company does not have to, and doesn't, give a grace period for the renewal premium. It is always due THE DAY BEFORE the renewal, or ON THE LAST DAY of the 6 month contract. The contract has ended, it no longer exists, and the insurance company owes no further notice than the renewal notice they sent to the insured.

Second, they don't plan for a new down payment. A new 6 month contract is beginning, and a down payment will be required. Depending on the carrier, that could be 16% to 25% of the total 6 month premium.

Bottom line is that when the contract is over, it is over. You have to start fresh (even if you are renewing the contract with the same carrier) with a down payment and commitment to the insurance company.

Why Didn't My Auto Insurance Rates Go Down After Six Months?

The familiar call came early this morning...why didn't my rate go down? Customers expect their rates to go down when their policy renews. All things being equal, that makes sense. Of course following that logic, if you are a perfect driver your insurance will soon be free - right? We all know that isn't going to happen. So let's assume no new tickets or accidents occur, and you haven't moved. Whether your rate goes down depends on several factors, but I will focus this on the two most likely triggers for the lack of a rate decrease at renewal, and perhaps even an increase.

Read more: Why Didn't My Auto Insurance Rates Go Down After Six Months?

What Can Make My Auto Insurance Rates Go Up on My Car in Oregon?

1. Forgetting to Submit Forms

If you declined to purchase certain coverage, exclude drivers in the household, or if you are required to provide proof of prior insurance, you have a specified amount of time to submit the forms to your new insurance company or agent. If your form declining coverage or excluding a driver or proof of prior insurance is not postmarked by the date it is supposed to, your insurance rate will probably go up. This is because the price you were given was based on your decision that you don't want the coverage, the excluded driver will not be driving your vehicle (ever), or your declaration that you had at least 6 months of prior insurance. If you forget to send the requested information, that declined coverage may have to be added to your policy, or the insurance company may assume you did not have prior insurance since it did not receive proof that you did.

2. Buying a New Car

Getting a new car is exciting, but remember that you may pay more to insure it. Assuming nothing else changes, the cost of insurance generally goes down as your car ages. Though your new car may not require you to invest a lot of money in maintenance costs, you probably will invest more money in auto insurance for it - especially if you add coverage likes Comprehensive, Collision, Rental Reimbursement or towing.

3. Moving to a New Area

If you decide to move to a new city or even a new neighborhood, it could affect your insurance rate. This could go either way, as moving to a safer city might actually lower your rates. However, if you move from a smaller city to a larger city, or if you move to a densely populated city, your rates could be significantly higher due to a higher likelihood of accidents.

4. Incomplete Paperless Options

If you start your policy with an agreement that you will be what is considered "paperless" but you do not sign onto the website and confirm your decision and verify your email address, the discount will be removed from your policy. That means the rate goes up. No one can complete this process except you, so if you don't want to do it, don't agree to sign up for it.

At Pulse Insurance, we will do our best to help you avoid some of these pitfalls. Give us a call at 503-489-3143 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. if you have any questions.

Why do My Auto Insurance Premium Due Dates Change?

I had a call today from a customer who wanted to change the due date of his premium. Two of the carriers will allow you to move your due date forward if you are on automatic payments, so that it is paid sooner. None of them will let you move it past your actual due date, so it is paid later.

Your premium due date is set at the time you apply, and in most instances is due every 30 days. Depending on the carrier, that could mean on the same date every month, or it could be literally every 30 days. Make sure you clarify this if your payment date is important to you.

One of our carriers requires the first payment in 25 days, then every 30 days after that. For example, if you got your policy on the 6th of the month, your first monthly payment would be on the 1st of the next month, and subsequent payments would be on the 1st of every month. The good news with this carrier, is that you only make a total of 5 payments, including your down payment. The last month, there is no payment. Again, make sure you look at the payment schedule if this is important to you.

If you have any questions, you can call us at Pulse Insurance - 503-489-3143 or email at This email address is being protected from spambots. You need JavaScript enabled to view it..