How do I change my payment method with USAA?

Yes, USAA does offer a grace period for customers’ payments. USAA gives policyholders who pay monthly until the end of the next billing cycle to pay any outstanding balance if they have not previously been delinquent on payments. If you pay your bill before the next statement, a late fee of $2 to $15 will be added to your premium for the next month. If the grace period ends without the necessary payment being made, USAA will cancel the policy.... read full answer

When USAA 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.

Yes, most car insurance companies have a grace period for late payments. Car insurance grace periods can be up to 30 days, but exactly how much time you have to make a payment before your coverage is canceled depends on your insurance company and state. Some insurers do not offer a grace period to their customers unless the customer is in a state that makes grace periods for late payments mandatory.... read full answer

An insurance company has to issue a notice of cancellation once you miss your payment’s due date. This notice states the final date your provider will accept payment. Paying within the allotted grace period will allow your insurance coverage to continue without a lapse.

Car Insurance Grace Period by Company

Grace periods for some companies are provided by customer service representatives and can vary by state.

Key Things to Know About Car Insurance Grace Periods

• A grace period ensures that your coverage is intact even if you pay your insurance bill late.

• You’ll still be covered if you get into an accident during your grace period, but you’ll have to make a payment before the end of the grace period.

• If your insurance company doesn’t have a grace period or you miss the deadline, you won’t have coverage in the event of a car accident.

• If you get into an accident even one day after the grace period ends, you will be personally liable for any property damage or injuries you cause. You won’t have coverage for your own injuries or vehicle damage, either.

• Insurance companies typically offer a separate grace period for newly purchased vehicles, extending coverage to the car for 7 to 30 days after you buy it in order to give you time to add the vehicle to your policy.

Paying your premium (or making the necessary adjustments to your coverage arrangements) before the end of your grace period is important because lapses in coverage make you seem like a higher risk for insurance companies and can result in more expensive premiums when you purchase a new policy. You could face legal consequences, too – like fines, license suspensions, and even jail time – if you’re caught driving without insurance.

Finally, most major insurers allow you to pay your premium in full up front or enroll in autopay to help you avoid missing due dates for your car insurance payments. Some companies even offer discounts for paying up front or enrolling in autopay.

You should pay your car insurance bill once or twice a year in most cases. How often you pay car insurance premiums depends on the company and your preferences, but annual or semi-annual payments are best. That’s because most car insurance policies last six or 12 months, and most car insurance companies give a discount – as much as 20% – for paying your premium in full upfront.... read full answer

Most people either pay in full or choose monthly installments, but your insurer may also offer quarterly payment plans, meaning you’d pay every three months (four times a year). You may want to think twice before choosing one of the more frequent payment options, however.

The more frequently you pay, the more your coverage is likely to cost, due to:

• Higher Premiums. If your insurance premium costs $1,000 a year, your insurer might charge slightly more than $83.33 per month (how the math works out if you divide by 12) if you want to pay monthly. They might charge $87.50 per month, for example, bringing your annual total to $1,050. The extra cost is needed to cover additional administrative expenses associated with monthly billing.
• Fees and Penalties. There often are processing fees for electronic payment methods like bank transfers and credit cards. They apply to each payment, so fewer payments means fewer fees. There’s also the added risk that you’ll forget a payment when you add more due dates to the mix, and that could result in late fees as well as penalties for lapsed coverage.

Remember, you are required to pay your bill in advance to be covered, but how far in advance depends on your preferences and the insurer’s policies. On a monthly payment plan, you’re paying for next month’s coverage in advance. If you miss a payment or pay late, you’ll be left uninsured. The insurer must collect the premium for your policy to be binding and up-to-date.

Finally, it’s worth noting that most car insurance quotes are based on a six-month policy paid in full at the beginning of each term. But insurers generally have other options available. Before you pick a payment plan, make sure you’re clear on the details and ask about other discounts you may qualify for.