Not paying car insurance bills
Car insurance companies may give you a limited grace period during which they will continue coverage even if you are tardy in paying, Barry says. Eventually, they will give you a date to pay up or lose your coverage.
"A cancellation for non-payment can occur at any time after delinquency notices have been sent that request payment by a specific date," says Morales.
Insurance companies can cancel policies under these circumstances because the decision "is driven by the customer not meeting their obligations," Morales says.
Grace periods vary by state, according to Morales.
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