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Car insurance: what happens if you forget to pay?

What does the law provide if you do not pay auto insurance within the time limits because you have forgotten the deadline? Will the coverage still be valid or not?

Between deadlines and various commitments, you can forget about paying the auto insurance premium . What does the law provide in this case? Let's see what are the consequences of not paying the premium or the first installment.

Insurance premium paid late: what the law requires

Article 1901 of the Civil Code illustrates the consequences of failure to pay an insurance premium. The article consists of three paragraphs and, in each, explains what happens:
  • if you do not pay the premium or the first installment within the terms of the contract;
  • if you do not pay the premiums after the first one;
  • if the insurer does not require payment of the premium.
In the event that you forget to pay the premium upon expiration or the first installment, if the contract provides for payment by installments, there will be a suspension of the insurance coverage until midnight on the day on which you will pay the amount due.

In the event that the non-payment refers to a premium subsequent to the first, the suspension of the insurance coverage will be activated from midnight on the fifteenth day after the deadline.

Car insurance: when the contract is resolved by law

The third paragraph of article 1901 of the civil code explains that if the insurer does not request the payment of the premium within six months from the deadline, the contract is automatically resolved. The insurer can only ask the insured for payment of the premium provided for in the contract and reimbursement of the costs.

The terms for the suspension and the rules for the "ope legis" termination of the contract apply to all insurance contracts with the sole exception of life insurance contracts.

There is another important clarification to make: in the case of car insurance, the insurance company cannot proceed immediately with the suspension of coverage. The sentence of the Court of Cassation n. 25130/2010 has in fact clarified that:

The issuing of the insurance label obliges the RCA insurer to compensate the damages caused by the circulation of the vehicle, even if the insurance premium has not been paid.
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About Minh Hiếu

Le Minh Hieu is a national-level weightlifter and a Singapore Weightlifting sports performance coach. Hieu's biggest passion is helping everyone find confidence, happiness, and health through fitness.


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