A car insurance grace period allows you to keep your coverage for a certain amount of time after you miss a monthly payment. If your insurance company offers a grace period, it will automatically go into effect if you don’t pay your car insurance premium on time.
Car insurance grace periods explained
If you’re late on your car insurance payment, some insurance companies will offer a grace period before they cancel your coverage. This period allows you time to catch up on your payments without an insurance lapse.
If you miss a payment, you will most likely be notified by your insurance provider by email, phone, or mail (or a combination of the three). This notification should also explain the company’s grace period terms and how much time you have before they cancel your coverage.
Making a payment during a grace period is no different than making a regular payment. Generally, these payments can be made online, by phone, or by mail. Note that some insurance providers may require you to pay a late fee for missing a payment, although in some cases, the penalty may be waived for your first missed payment.
As long as you make the full payment before the grace period ends, your policy won’t lapse.
Most auto insurance companies offer grace periods
A majority of insurance providers extend a grace period to their customers. If your insurance provider does offer a grace period, your policy details will clearly state the length and any penalties for being late on a payment.
The average grace period for most insurance companies is 10 days from the original payment due date, but this depends on the provider.
Your insurance provider is legally obligated to provide a notice of cancellation before they can cancel your policy due to nonpayment. This notice will outline your last date of auto insurance coverage and whether or not there is a grace period.
Here are a few examples of grace periods from different providers:
| Provider | Grace period |
|---|---|
| Allstate | Payment will rollover to next month with an added late payment fee |
| GEICO | 8 to 10 days |
| Liberty Mutual | 5 days |
| Nationwide | 3 to 5 days |
| Progressive | 10 days |
| State Farm | 15 days |
You could have a lapse in coverage if you miss a car insurance payment
The biggest consequence of missing a car insurance payment is having your auto insurance policy canceled. Grace periods exist to help policyholders make their payments without a cancellation or coverage lapse.
But not all insurance providers offer a grace period—and if yours doesn’t, you risk having your policy canceled and not having coverage if you file an insurance claim.
Additionally, even if you do have a grace period, if you miss the grace period payment deadline, you won’t have coverage, and you’ll be on the hook for damages if you’re involved in a car accident while uninsured.
If you think you’ll miss a car insurance payment, notify your insurance provider immediately. They might be able to set up a payment plan or allow you to make partial payments to avoid an auto insurance lapse.
If you struggle to remember to make your payments, you should set up automatic payments, pay in full, or set a reminder on your phone to help you out.
Penalties for a lapse in coverage
If you miss an insurance payment or the grace period deadline, it can lead to a lapse in coverage—which is a period where you own a car but don’t have insurance coverage. Car insurance is a legal requirement in all states, and operating a motor vehicle without coverage is a severe offense.
If you drive without insurance coverage, consequences can include:
- Fines
- Jail time
- Legal consequences
- Driver’s license suspension
- Vehicle registration suspension
- Vehicle impoundment
- Having to file an SR-22 with the DMV
- Community service
- A steep increase in your car insurance rates
- Difficulty finding a new car insurance policy
While policy lapses happen for a variety of reasons, the fact remains that it is a big red flag for insurers and they put drivers with an insurance policy lapse in the high-risk category to insure. This is true even if you have a good driving record.
Learn more: How does a car insurance lapse impact rates?
What to do if you have a lapse in coverage
If you’re in the unfortunate position of having your car insurance coverage lapse, don’t panic—follow these steps:
Call your insurance provider
First, you’ll need to call your insurance agent and make sure you have all the information. Ask if your coverage has lapsed and, if so, how long you’ve been without coverage.
If you’ve recently missed a payment and you’re not sure if they offer a grace period, there’s a chance your policy may still be active.
Ask about reinstating your policy
If your car insurance policy hasn’t been canceled yet, you’re in the clear. But if it has been canceled, ask if you can renew your car insurance policy to maintain continuous insurance coverage with the policy you had previously.
If you can have your policy reinstated, you can pay the remaining balance, and you may be able to avoid a lapse in coverage. Your insurer might also charge you a reinstatement fee.
If your policy can’t be reinstated, get a new one
If your policy has lapsed and your insurer will not offer a reinstatement, you’ll need to find a new insurance policy immediately, as the law requires all drivers to meet their state’s minimum insurance requirements.
However, starting a new policy after a coverage lapse can be expensive and will most likely mean higher rates. Since you’re looking at higher premiums, it’s a good idea to shop around for car insurance quotes.
With the Jerry app, you can easily compare car insurance quotes from dozens of providers to find the cheapest car insurance—even if you are considered a high-risk driver. Simply download the Jerry app, enter your information, and you can review auto policies from the best car insurance companies.
The app will show you rates based on your driver profile, including your driving record and vehicle information. Whether you’re looking for full coverage or basic liability insurance, you can adjust your car insurance coverage needs directly in the app.
FAQ
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How many days can you be late on your car insurance payment?
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Do you still have car insurance coverage during your grace period?
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information. Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
