A grace period can help you breathe a sigh of relief when you are late making a bill payment. When it comes to car insurance grace periods, they can vary from provider to provider. But it’s important to understand how they work, as well as the specific grace period (if there is one) with your policy. Otherwise, you risk serious consequences for missing your car insurance payment!
What is a car insurance grace period?
When it comes to car insurance, a grace period is a certain amount of time a car insurance company will give you after missing a car insurance payment before your policy is canceled for a late payment.
There are all kinds of reasons policyholders might miss a payment. Sometimes, they simply can’t afford to make the payment or perhaps it slips their mind altogether.
You’ll need to be sure of your specific grace period, but generally, it ranges from three to 30 days for most companies. Additionally, some companies allow the payment to roll into the next month, however you’ll then be subject to a late fee.
Don’t miss your car insurance payments
We understand that life happens, and sometimes it is difficult to make your payments. Whenever possible, give your insurance company as much notice as possible if you’re going to miss a payment. You may be able to make a payment arrangement and figure something out so your policy isn’t canceled.
If it is simply a matter of forgetting to make your payment on time, we encourage you to set up automatic withdrawal for your car insurance payments. Additionally, you can consider paying a full year up front. This can even come with a discount for doing so!
Do you have more questions about car insurance and grace periods? Call us today!