Candace Baker, Car Insurance Writer
@candacebaker
Yes, Liberty Mutual has a grace period of 10 to 14 business days for payments, with specific timeframes varying based on state law. During the grace period, policyholders can pay their past-due premium in order to avoid a lapse in coverage. If the grace period ends without the necessary payment being made, Liberty Mutual will cancel the policy. And even if the policyholder pays the balance within the grace period, Liberty Mutual will still charge them a $15 late fee after the fifth day, although it may be waived for some customers.
If you have autopay set up but don’t have sufficient funds to make a payment, Liberty Mutual allows you to delay the automatic payment for up to seven days. However, this is separate from the grace period. After seven days, you will be automatically charged, and if you cannot pay the owed amount, Liberty Mutual will send you a notice of cancellation.
When Liberty Mutual sends a notice of cancellation, it will include the final date that they will accept full payment before your coverage lapses. Since almost every state requires you to have car insurance, a lapse in coverage could lead to serious consequences, including fines and even a license suspension if you’re caught driving. Additionally, a lapse in coverage designates you as a high-risk driver and can make car insurance more expensive in the future, so it’s important that you pay your car insurance premium prior to the final cancellation date.
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Does car insurance have a grace period for late payments?
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