What happens when a customer fails to update their payment method after receiving a new credit card?

When a customer fails to update their payment method after receiving a new credit card, the coverage will be terminated. This is because insurance premiums need to be paid to maintain active coverage. If the payment method on file is invalid—such as when a customer receives a new credit card that isn’t reflected in the payment information—the system typically cannot process the premium payment. Consequently, this could lead to a lapse in coverage, ultimately resulting in termination if the issue is not addressed. Insurers rely on timely payments to ensure that coverage remains active, and without an updated payment method, they cannot achieve this.

Notifications about payment issues may occur, but these do not prevent the termination from happening if the situation is not resolved in time. Thus, it’s crucial for customers to promptly update their payment information after receiving a new credit card to avoid losing their coverage.