Why do insurance companies make such a big deal about a missed monthly payment?
Insurers see missed monthly payments as an indicator of financial weakness. This is commonly regarded as an indicator of someone who might be likely have a fraudulent claim. Be aware that insurance companies will use two missed payments as grounds to cancel your policy. Policy cancellation for non-payment is a negative factor on your insurance record and can affect your ability to get competitive premiums in the future. It is your responsibility to inform your insurer if you change bank accounts with enough lead time to ensure a payment default does not occur as a result of such a change.
