Other reasons are that many companies that insure properties do not want to insure a property that has had a lapse in coverage. Their main concern is that the property could have sustained damage during that time and was not repaired. This is particularly more challenging on the South Shore, where coastal proximity is an issue for insurance companies too. Often times, Mass. Property Insurance Underwriting Association will be the only option for insuring your property when this happens and their rates are typically high. The same goes for auto insurance; some companies will decline coverage for someone that has had a lapse in coverage whereas other companies will charge a higher rate.
Some companies will even apply a higher rate on the homeowners insurance policy if the auto policy has been issued a late bill. Likewise, some companies will apply a higher rate on the auto policy depending on the number of late bills issued.
So in these busy times, try not to let this happen. It will cost you more money and time trying to rectify the situation.
Contact us at Gordon Insurance with any other insurance bill payment questions, we're here for you! Check out another blog on what to do if cancelled for an auto insurance nonpayment.