What are the penalties for not paying an insurance premium?

In New Hampshire, failure to pay an insurance premium on time can result in serious penalties. The most common penalty is the cancellation of the policy. This means that the policyholder is no longer covered by the insurance provider and therefore may be liable for any damages or costs that would have been covered by the policy. Another possible penalty is a late fee. Insurance companies may charge a fee for any late payments, which will be in addition to the regular premiums. Late fees can vary depending on the insurance provider, so it’s important to read all of the terms of the policy before signing up. Insurance companies may also report late payments to the credit bureaus, which could result in a lower credit score. This could make it difficult or more expensive to obtain credit in the future. Finally, the failure to pay an insurance premium may result in the insurance company taking legal action against the policyholder, such as a lawsuit. The policyholder may have to cover any of the costs associated with the lawsuit and any other damages that are awarded to the insurer. The best way to avoid any of these penalties is to pay insurance premiums on time. Failing to do so can result in serious consequences, so it’s important to make sure that all premiums are paid on time in order to maintain coverage and avoid any costly penalties.

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