Auto Insurance Payments and Grace Periods

Buying insurance requires a certain amount of research before you even begin comparing insurance quotes and part of that research is learning the terminology associated with different types of insurance, including auto, home, life, health and renters. One term that you want to fully understand is “grace period.”

With most insurance policies, you are offered a grace period – typically 30 days after the payment due date – to pay your monthly premium. This prevents your policy from ending for non-payment in the event you overlook the payment’s due date, you have an unexpected financial issue right as the payment comes due, or even if your on-time payment doesn’t make it to your insurance provider for some reason and you need to write a second check.

The grace period an auto insurance provider offers on a car insurance policy can vary from state to state and insurance provider to insurance provider. Some states stipulate auto insurance grace periods by law and other states leave grace periods up to the insurance provider. In a state without grace period regulation your car insurance provider determines the length of the grace period, or if it offers a grace period at all. Some insurance providers will cancel your car insurance policy if the premium is unpaid after midnight the payment is due. It’s up to you to find out what sort of grace period is offered on your auto insurance policy.

Automobile insurance is vital if you drive a vehicle, in fact a certain level of liability car insurance is likely required in the state the car is registered. Auto insurance is also a great place to save money because it comes in so many types and levels of coverage, including liability, collision, comprehensive, uninsured motorist and more. You may not need the grace period for paying the monthly premium on your car insurance policy, but you do want to be informed on how long of grace period your policy offers.

Did You Know? It’s up to you to know your automobile insurance providers grace period policy.

Takeaways:

1. Grace periods allow you to pay your bill after its due date without your policy being cancelled.
2. Some states regulate a minimum grace period for auto insurance.
3. Insurance providers in states without grace period laws can set any length, including none, for car insurance grace periods.

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