Yes, most car insurance companies have a grace period for late payments. A typical car insurance grace period is 10 days from the payment due date, but depending on your insurer, you could have anywhere from 0 to 30 days to make a payment before your coverage is canceled.
An insurance company generally will issue a notice of cancellation within a few days of your missed due date. This notice states the final date your provider will accept payment to keep your policy active. Paying within the allotted grace period will allow your insurance to continue without a lapse in coverage.
Insurance companies are not very transparent about their late payment grace periods. In most cases, the grace period is highly dependent on state law but most often ranges from 0 to 10 days.
Grace periods ensure that even if you pay late, your coverage is intact. You can file a claim for an accident that happened during your grace period, and those claims are usually covered. You’ll need to get caught up on your payment before making a claim, though, and you need to do so before the end of the grace period.
If you don’t have a grace period or you miss the deadline, you won’t be covered for a claim. Your coverage stops at the end of the grace period. If you get into an accident even one day after, you’re on your own, leaving you personally liable for any damages.
Lapses in coverage also make you seem like a higher risk to the insurance company and will probably result in more expensive premiums when you go to get insurance the next time. You could face legal consequences, too – like fines, license suspensions, and even jail time – if you’re caught driving without insurance.
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