car insurance grace period

Car Insurance Grace Period

Do you feel overwhelmed with so many bills and so little room in your budget to pay for all of them? For millions of Americans, paying their monthly bills can be a juggling act. Some payments have to be postponed until the next paycheck comes in.

For some items like car insurance, there can be serious consequences for not paying your premium. Thankfully, most insurers offer car insurance grace period that allows you more time to make a full payment.

Car Insurance is Mandateddon't stay uninsured

Unfortunately, auto insurance is something that almost all of us have to pay for. If you own a car, you must carry minimum levels of coverage in all 50 states. While some millennials are ditching their car for Uber and other transportation services, most people still get around in a personal vehicle.

This means buying a policy and paying it in full, or every month. Since many people can’t come up with $600 or more for 6 months of coverage, they spread the payments out into monthly installments.

An Auto Insurance Policy is a Contract

When you purchase a policy, you are agreeing by the terms of the contract, to pay your premium in full and on time. Not paying your insurance bill can result in your policy being canceled

Driving around with a non-insured automobile can have very serious consequences, especially if you get into a bad wreck. This is why it’s so important to pay your bill on time and maintain continuous coverage.

the way auto insurance grace period works

How Auto Insurance Grace Periods Work

There are times when almost everyone has trouble paying their bills. Insurance premiums can cost well over $150 a month and a lot more for multiple vehicles. If you cannot pay your insurance premium, there are some insurers that offer grace periods. This is something you should look at before you buy a policy if you are on a tight month to month budget.

How Long Are Car Insurance Grace Period after termination?

A grace period is simply an extended amount of time to pay your insurance bill, after the due date. These extensions can range from 3 days to 31 days. Some states have mandated 10-day extensions. Other states allow policies to be terminated for lack of payment in just 3 days. New York allows the longest extended period, up to 31 days after the due date.

Avoid a lapse in your insurance coverage

Every insurer sets their own rules and is governed by state insurance laws. Carriers that send out a notification of non-payment automatically give extensions. The document, which is normally sent via email and standard main, details the amount of time you have to pay your premium, so you can avoid a lapse in your insurance coverage. Some providers are not required by law to notify policyholders of impending cancellation. They just cancel the policy.

the way auto insurance grace-period-works

If you are uncertain if your insurer has a grace period, call and find out. You want to maintain continuous auto insurance coverage and keep an active policy. Having your policy canceled can result in your credit profile being hurt and paying more for future coverage.

Failure to Pay Your Premium Can Result in Policy Cancellation

If you go beyond your extension and still do not make a payment, your policy can be canceled. Auto insurance policies are contracts. Part of that contract is the policyholder agrees to make agreed to payments, monthly or quarterly, in order to keep the policy active.
failure to pay car result in policy-cancelation
Once you fail to pay your premiums, you will get a notification that your insurance coverage has been canceled due to non-payment. If you have filed a claim during this period, it may not get paid. This is one of the many reasons why it is so important to pay your auto insurance premiums on time, every time.

What Companies Offer the Longest Grace Periods?

Large carriers offer the longest time extensions to pay your insurance bill. This includes companies like State Farm, Amica, and Allstate. Sub-standard and high-risk carriers often do not allow extensions, or if they do, only for a few days.

State Farm car insurance grace period

Policies are sold through dedicated agents. If you cannot pay your premium, call your agent and ask for an extension. You may be granted up to 30 days to pay your bill.

Allstate

The third largest auto insurer offers a 10 day grace period in most states.

Geico

This direct to consumer carrier offers 15-day extensions. If you pay your premium late, but within the extended time, it will not be reported to any credit bureau.

Compare Cheap Auto Insurance Quotes Online

Are you unhappy whit your current insurer’s car insurance grace period? Or, do you need to lower your rates to make your budget work? If so, you can check multiple quotes in minutes at sites like GoodtoGoInsurance online.

Free quotes

The quote is free and you will be matched with up to 10 direct quotes. Most consumers can save over $500 by buying a direct policy. Get started now and save more on automobile insurance.