If you are insured by a big insurance company and you are running a little behind on your premium payment, you might wonder if they have a grace period.
While insurance companies aren’t required to offer those extra days of coverage by law, most offer a 7 to 10-day timeframe for late payments.
You will be expected to pay a late fee on top of the regular premium, but if the payment is made by that cutoff date, you will be covered and your insurance will not lapse or cancel.
The Grace Period
If you are unable to make a payment on your car insurance, they offer an additional nine-day grace period if you explain the situation and ask for help. To get your insurance coverage back on your vehicle, there are often more penalties, which usually means a higher rate, or a stricter payment plan option.
If you miss a payment completely, they will send you a warning letter within 14 days telling you if you do not settle the amount you owe, your insurance will be canceled within 14 days.
However, the insurer doesn’t impose any late fees for late payments. Because insurance payments are made in advance, you are covered for the month ahead, which gives you a lot of time to make the next payment.
Making Your Payments
When you purchase auto insurance coverage, the cost of your annual premium will be stated in the documents. You can either pay your insurance for the complete term of a year, or you can pay it in payments, which can be set up on the quarterly basis which is every three months or monthly.
When you set up the payments, you can set up autopay to ensure that your coverage won’t lapse and that your premiums will be paid on time. Otherwise, you will be invoiced either electronically or by mail.
The invoice will indicate your premium due date and will specify the grace period, clearly indicating that your coverage will lapse if your premium isn’t paid by the set date on the statement.
Your actual insurance policy that you purchase will also indicate the grace period. Often, the grace period is about an additional week.
Some state require by law that the insurance company send you written notice 7 to 10 days before your policy lapses, so you will have time to correct the problem.
Can I Use My Grace Period Every Month?
Some insurance carriers do allow clients to use their grace period every single month. However, it is never a good idea to do so. Paying within your grace period every month can have some very negative consequences for your policy in the future.
Let alone the fact that you could end up paying more than you should as paying in a grace period can attract both late fees and penalties.
What If I Have An Accident During The Grace Period?
If you have a crash during the grace period, your damages are covered by your insurance policy as they normally would be. If the accident occurs after the grace period, then you aren’t covered, and you must pay for your damages and any damages that you cause out of your pocket.
You should always pay your premiums on time, because when your coverage lapses it is the same as driving without the insurance coverage that is required in your state.
Driving without insurance is costly and can end up leading to higher insurance premiums, court-imposed fines, jail time, loss of driving privileges and even get impounding of your vehicle. Insurance coverage is a requirement for drivers in 48 of the 50 states.
Paying your insurance premium in the grace period ensures you are covered if an accident takes place. If you have lapsed in your payments and the grace period has expired and you are involved in an accident which is your fault, you will be personally responsible for paying for the damage to your car and any others involved in the accident.
The easy way to ensure this never happens to you is to make sure your monthly payments are paid when or before they are due. You could also face state penalties if you are caught without car insurance. This is something you should avoid at all costs as the stiffest penalties involve spells in jail.
Consult with a Personal Injury Attorney
If you have been involved in an auto accident, consult with a personal injury attorney who is licensed in your state.
Complete the Free Case Evaluation Form on this page to have a lawyer review the details of your auto accident. Personal injury lawyers work on a contingency basis, so they aren’t paid until you are compensated for your damages.
A statute of limitations does apply, so don’t wait too long to get your claim underway. Have an attorney in your area review the details of your accident today and determine how to proceed with your claim.
Additional Resources
- When Is It Too Late To Get A Lawyer For A Car Accident?
- Dealing with Insurance Company During Personal Injury Claim
- Personal Injury Attorneys By State
*Disclaimer
The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Pizza Hut or any other party, you may not be entitled to any compensation.
