Your car insurance premiums could double with a late payment because it will negatively affect your credit score. Many people do not realize that their insurance premiums are largely based on their past credit history. The insurance industry uses a special insurance credit score that is based on past credit criteria. When you have a late payment, this can significantly lower your insurance credit score. When this happens, your insurance premiums will go up by a large amount of money within a very short period. The insurance company will not want to continue your policy unless you are willing to continue making payments.