Auto Insurance, Grace Periods & Lapses

Do you know how long your insurance company will allow your auto insurance to continue after a missed payment?

While the timeline varies somewhat, a good general rule of thumb is one week (7 days). This is because insurance companies have little tolerance for providing coverage to drivers who haven’t paid their premiums - the insurance carriers are effectively insuring someone for free or worse, paying claims for free.

If you’re the type of client that likes to have a longer grace period and a little more flexibility on when payments are due, go for a paper bill. Because the insurance carriers have to send a bill via USPS, they allow a longer grace period to account for transit times.

In the event you’re unable to pay in time and your auto policy lapses, most insurance carriers will give credit for prior or continuous insurance history so long as you get another policy going within 30 days. Please note, some carriers don’t and you’ll have to start back at square one after a lapse or cancellation.