What Is Auto Insurance Grace Period

A grace period is the amount of time you have to make your insurance payment after your expiration date. Most car insurance carriers allow a grace period. These grace periods can vary a lot per insurance provider. Grace periods can certainly be useful, but it is important not to use them frequently. Becoming dependent on your grace period can get you in a tight spot in the future. Learn what a grace period is and use it wisely. Find out more and visit our website for free auto insurance quotes online.
The insurance grace period can vary depending on the insurer and policy type. Depending on the insurance policy, the grace period can be as short as 24 hours or as long as 30 days. The amount of time granted as an insurance grace period is mentioned in the insurance policy contract. Paying after the due date may attract a financial penalty from the insurance company.  Some companies offer a few day grace periods with no late fee, then an extended grace period which does include a late fee.
Insurance grace periods protect policyholders from immediately losing coverage in the case that they are late on paying their premiums. Regulations covering insurance grace periods, including how long they have to last across policy types, are managed by states. Some states may allow insurers to drop policyholders immediately and without advanced notice if premiums are not paid on time. 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 to your policy in the future. Late fees are often added to your payment when you pay in your grace period. Late fees can vary from two all the way up to twenty dollars. Adding that kind of fee onto your car insurance premium  every month can make a huge difference in your annual insurance cost.

Visit us for more info. Read more!