What They Don't Teach You in High School

14 Brokers and agents may also offer premium-financing options from premium financing companies. Read these contracts very carefully, as you may be responsible to pay the full premium amount to the premium financing company even if you cancel your auto policy in the middle of the term. Question: What happens if I don’t pay my premium? Answer: The insurance company is only obligated to give you 10- day notice of cancellation due to non-payment of auto premium. What this means is if your premium is not in their office and applied to your account by 12:01 a .m. the day that it is due, the insurance company will send you a 10-day notice of cancellation. This gives you the chance to pay the insurance before your policy is cancelled. If the company doesn’t have your money, you don’t have the coverage, and they will not send out another notice telling you that you have been cancelled. You can see why it is very important to make sure your payment is made in plenty of time. Question: I am going to college in another state, do I have to make changes to my policy? Answer: You will have to give the insurance company your new mailing address and the principal address where your car will be garaged. If your insurance company does not operate in the state where you will be attending college, you will have to get new insurance in that state. Question: Is it true if I’m a full time student with a B average that I won’t pay as much for auto insurance? Answer: Some insurance companies offer special “good student” discounts. The idea behind the discount is that students who are busy studying and getting good grades are less likely to have the time to drive around partying and getting into accidents. Not all insurance companies offer good student discounts. Contact your insurance company or company representative and ask.