Reader’s Question:

Is it true that now I will have to pay the full year premium in advance to restore the insurance just because my auto insurance was cancelled for non-payment? I live in Hawaii.

Pink

Honolulu, HI

It will depend upon the underwriting rules of the insurance provider in Hawaii you are trying to get insurance with if you will be required to pay in full for your next car insurance policy.

Additionally, it matters if the state requires you to file a financial requirement filing. Most states require a six month paid in full if you have permitted your insurance to lapse. This is called an SR22s in most states.

Another factors that will likely play a part in the decision of an Hawaii insurance carrier and if you will have to pay for a full year’s policy in advance would be the length of time of your insurance lapse after your cancellation due to non-payment and if there were any losses since the cancellation date. For instance, some insurance company will usually reinstate a policy that has cancelled because of non-payment - as long as the lapse in coverage has been less than thirty days, and there have been no losses.