How to Keep Avoiding Car Insurance Coverage Lapses: According to the West Virginia Offices of the Insurance Commissioner policies can be canceled if paid just one day late; state laws may vary. However, there are several precautions that can be taken to decrease the likelihood of making a late payment and lapses in policies. One of the most effective ways is to choose the option of paying premiums by electronic fund transfer. Numerous companies offer policyholders the ability to have the amount of a premium withdrawn from a designated bank account. This could not only avoid paying late, but many companies will waive or lower billing fees for customers that choose to pay for coverage in this manner.

There is also the old fashioned method of ensuring that the payment is mailed in advance so that it is received by the insurer before the due date. However, if a payment is going to be late, it may be better to call the carrier instead of mailing and see if it can be paid over the phone rather than experiencing a lapse, even if it is just for a day or two. Many insurers will offer policyholders the option to pay the bill over the phone to avoid any unfortunate repercussions. By making the effort to always pay one’s bills in a timely fashion, and by taking advantage of technological conveniences such as online bill pay automatic bill pay systems, a policyholder could easily avoid many of the consequences that come with being late on payments.