Car Insurance Grace Period

Do you feel overwhelmed with so many bills? Do you have little room in your budget to pay for all your bills, including your auto insurance premium? For millions of Americans, paying their monthly bills can be a constant juggling act. Some payments have to be postponed until the next paycheck comes in. For some items like car insurance, there can be severe consequences for not paying your premium, including your policy’s cancellation. Thankfully, most insurers offer a car insurance grace period that allows you more time to make a full payment.

What is an Auto Insurance Grace Period?

Simply put, a grace period is the amount of time the policyholder has to make the payment after the policy coverage lapses. Suppose your policy is due on the 1st of the month, and there is a grace period to the 3rd. In that case, your policy might lapse on the 4th of the month if no payment has been made.  

Each provider has its policies so that the grace period can vary depending on your insurer’s terms. For some insurance companies, the grace period might be just one day, while others have extended go auto grace periods up to one month. Check your declaration page carefully before you buy a policy and make a note of the grace period. 

Some insurers impose fees if a payment is made after the policy is due but won’t cancel it. This is why for most, it makes sense to pay the installment payment on or before the due date. If you are late on your payment, it may reflect negatively on your credit rating report.  

Car Insurance is Mandatory in Every State

Unfortunately, auto insurance is something that almost all of us have to pay for because most of us own and drive automobiles. If you own a car, you must carry minimum coverage levels in all 50 states because it’s the law.  

While some millennials are ditching their car for Uber and other transportation services, most people still get around in a personal vehicle that needs always to be covered. 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 six months of coverage, they spread the payments out into monthly installments. They can even get insured with low deposits from $20 down for qualified drivers, making the first month of coverage more affordable.     

An Auto Insurance Policy is a Contract

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

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

How Car 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, some insurers offer grace periods. If you have limited funds and have a history of paying your bills late, you should consider an insurer with a grace period of at least two weeks or more.  

How Long Are Car Insurance Grace Periods?

As stated earlier, go auto grace period is simply an extended amount of time to pay your insurance bill after the due date. Some states have mandated 10-day extensions. Other states allow policies to be terminated for lack of payment in just three days. New York allows the longest extended period, up to 31 days after the due date. This is one reason why auto insurance’s average cost in New York is $1,445, well above the national average of $1,235.  

Avoid Lapse in Your Insurance Coverage

Every insurer sets its own rules and is governed by state insurance laws. Carriers that send out a notification of non-payment automatically give extensions. The document is usually sent via email and standard postal mail. 

It details the amount of time you have to pay your premium so that 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. If you forget to make a payment, this can come as a big shock that you are no longer covered. 

 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 you paying more for future auto insurance 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 provider can cancel your policy. Auto insurance policies are contracts. Part of that contract is the policyholder agrees to make agreed to payments, monthly or quarterly, to keep the policy active.

Once you fail to pay your premium past the grace period, 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 most prolonged grace period time extensions to pay your insurance bill. The list includes companies like State Farm, Amica, and Allstate. Sub-standard and high-risk carriers often do not allow extensions. If they do at all, it will only be for a few days.

State Farm Car Insurance Grace Period 

Dedicated agents sell State Farm’s policies. 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 ten-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, and your policy will remain active.  

Compare Cheap Auto Insurance Quotes Online

Are you unhappy with 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.

Get Free Online Quotes 

The quote is free and only takes about four or five minutes to complete. Once completed, you will be matched with up to 10 direct quotes. Most consumers can save over $500 by buying a direct policy online. Get started now and save more money on auto insurance.