Is insurance valid during the grace period?

Yes, insurance is valid during the grace period for missed payments. Car insurance companies have grace periods that can last up to 30 days, and if you need to file a claim in that time, you will still be covered - you may just need to make your past-due premium payment before they will cover your claim.

Insurers also offer grace periods for adding a newly purchased car to your policy, which last for a similar amount of time as missed payment grace periods. In this case, insurance is valid for the new car even though it hasn’t been added to the policy yet.

Grace Periods for Missed Payments

If you miss a car insurance payment, your insurer will send a notice of cancellation that states when your policy will effectively end if payment is not made. The grace period is typically up to 10 days, and if you don’t pay your premium within that time, your coverage will lapse.

When your coverage lapses, you are no longer insured. The consequences for being caught driving without car insurance can be severe, and a gap in your insurance history can lead to higher rates in the future.

Grace Periods for New Vehicles

If you just purchased a new vehicle but have an existing policy for another vehicle, your current policy will cover you when driving the new car home or to the DMV. You typically have up to 30 days to notify your insurer of the new vehicle and update your policy.

If you do not add the car to your policy within your insurer’s grace period, the vehicle won’t be insured. This can lead to serious consequences if you are caught driving it.

To learn more, check out WalletHub’s guide to the penalties for driving without insurance.