What are the penalties for not paying an insurance premium?

In Washington, the penalties for not paying an insurance premium depend on the type of insurance. For example, if you do not pay your car insurance premium, your insurance provider may cancel your policy. Fortunately, your insurance provider must notify you at least 30 days before the cancellation date and you will have time to make a payment. If you do not make a payment prior to the cancellation date, the Department of Licensing may suspend your driver’s license. In addition, if you do not pay your health insurance premium, your insurance provider may kick you out of the plan and you will be responsible for paying your medical bills in full. If you are kicked out of a health insurance plan, you may also be subject to additional fees such as a late enrollment fee. Finally, if you do not pay your life insurance premium, your policy may lapse. This means that the policy will no longer be in force and any death benefits or cash-value for the policy will be forfeited. Overall, if you do not make premium payments for your insurance policy, the consequences will depend on the type of insurance you have. You may face penalties such as the suspension of your driver’s license, the forfeiture of death benefits or cash-value from your life insurance policy, and responsibility for medical bills.

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