How Late Auto Insurance Payments Can Affect Your Credit Score

Will Paying My Auto Insurance Late Hurt My Credit Score?

Being late with auto insurance payments may or may not affect your credit. But there can be negative consequences either way.

Your credit score is an important number

It tells lenders how much risk they're taking on by loaning you money. As such, it's wise to do what you can to keep your credit score in good shape.

• One move on your part that has the potential to damage your credit score is paying certain bills late. If you fall behind on a credit card or installment loan payment, that will likely get reported to the credit bureaus and result in a hit to your credit score.
• If you're late with your auto insurance premiums, your credit score may or may not be impacted. Experian explains that auto insurers typically do not report on-time payments to the credit bureaus. So paying those premiums on time generally won't help your credit score.

You risk losing your insurance -- and your car

If you're late paying for auto insurance, it may not affect your credit score at all. But you might face dire consequences regardless.

1. You risk losing your coverage.
2. If your policy lapses due to non-payment, you could face legal and financial consequences.
3. Not having insurance can lead to fines, license suspension, job loss, and even vehicle repossession.
4. Contact your insurer if you're experiencing financial hardship to avoid potential hardships.