Allstate’s grace period for missed payments is 30 days after the date when you should have paid it. But try not to rely on this—your policy will be canceled if you haven’t made the payment by the end of this period.

You need to keep paying for your insurance to benefit from coverage—and to avoid an

insurance lapse

! But lots of us have been in a position where that payment needs to come out of our account when we can’t quite cover it. What happens to our

car insurance

then?

Of course, the insurance company wants the money on time, but some of them—like Allstate—would rather get it a few days late than lose customers every time this happens. That’s why Allstate offers a grace period for customers who can't make their payments on time.

Here’s everything you need to know about grace periods from Allstate.

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Car insurance quotes from Allstate

Does Allstate give you a grace period after your auto insurance expires?

If you’ve come here because you’re late for your Allstate payment, here’s the good news. You do have a grace period if you haven’t paid to renew your policy or are just late paying your monthly installment.

Allstate

has a grace period of 30 days after your due date by which you need to have made the payment to keep your policy active. Missing or late payments could cause a lapse in coverage or the termination of your policy.

It’s important to treat this grace period as a safety net—though not too regularly. You will be charged a $10 late payment fee if you make your payment within these 30 days.

Of course, that isn’t much compared to the potential costs of having a lapse in your insurance coverage. Penalties for

driving without car insurance

vary from state to state but typically include fines and even removal of your license. Not to mention you’ll be footing the bill for any accident you cause while driving uninsured.

Luckily Allstate can’t just cancel your policy without telling you, because the law requires insurance providers to notify customers before cancellation. This is normally sent out just before the end of the grace period and will let you know the final due date by which you need to have paid before cancellation.

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What are the benefits of a grace period?

This grace period is a very important safety net for customers because it allows them to continue to legally drive instead of losing their coverage as soon as they miss a payment. It also helps to avoid a lapse in insurance coverage which can have lasting effects on premiums.

Just as a gap in your resume can lead potential employers to ask questions in a job interview, a lapse in your insurance will worry insurers. Providers typically increase rates by around 8% if you’ve got even a month’s gap in your coverage. It can go even higher for longer lapses.

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Allstate continuous insurance discount

There are a few different ways to get discounts on your car insurance with Allstate, including being a good student with a GPA of 2.7 or above. But one of the simplest ways to benefit is simply by paying on time every time.

Insurers like loyalty because it’s cheaper and easier for them to keep customers than to get new ones. Many—like Allstate—offer discounts for things like continuous insurance coverage, rewarding you for staying with them and keeping your insurance active.

At Allstate, they offer the Responsible Payer Discount to customers who haven’t received a cancellation notice for non-payment in the past year. In other words, this discount goes to customers who haven’t had to use Allstate’s grace period. Paying on time not only saves you money in late fees or increased premiums, but it can also get you discounts.

How long is a typical grace period for car insurance?

Allstate’s grace period of 30 days is one of the more generous grace periods out there. Not all insurance providers even offer one at all, and the average window is only around 10 days. Of course, having a longer grace period isn’t an excuse to be complacent, so try to avoid needing to use it at all!

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How to cancel Allstate insurance

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Consequences of a car insurance lapse

To help persuade you to steer clear of risking an insurance lapse, here’s a reminder of some of the penalties that could await you if you do fail to pay in time:

Fines: Wherever you live in the country, driving without insurance is likely to earn you a sizeable fine. If this is your first time you can expect to need to pay around $500 to $1,000 if you are caught without insurance. If it happens more than once, this can go up to $5,000. We think you’ll agree it’s a lot cheaper to just pay on time.

License suspension: Even more serious, most states (the only exceptions are

California

Iowa

, and

Washington

) can suspend your license if you are caught driving while uninsured.

Higher car insurance rates: As we explained earlier, insurance companies do not look kindly upon people with insurance lapses so if you let this happen, you can expect to pay the price the next time you go shopping for

car insurance quotes online

Vehicle repossession: If you have a car on finance, it might not just be your license that you could lose if you’re driving around without insurance. Lenders have the right to repossess your vehicle in these cases, leaving you with no insurance, no license, and no vehicle.

What to do if your Allstate car insurance lapses

You may well understand all of the risks mentioned above but life happens and sometimes you really can’t pay your insurance on time. It might not even be possible to pay by the end of your grace period, which means your insurance will lapse.

The most important thing to do at this point is to not bury your head in the sand because the longer this goes on the worse it will get for you. You need to call Allstate immediately at 1-877-810-2920. It sounds scary but their agents will be ready to offer any help they can to get your coverage reinstated.

If that doesn’t work out, you need to get started on finding a new policy straight away. Make sure your new policy meets the legal limits for

basic liability coverage

in your state. In

New York

, for example, you’ll also need

personal injury protection (PIP)

. After that, you’ll need to get your insurance information updated with the local Department of Motor Vehicles (DMV).

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How to avoid a coverage lapse

Automatic payments are the easiest way to pay your insurance because it means you can’t forget to make a payment. As long as you have the funds in your account, it’ll be taken automatically and you can avoid an expensive lapse.

Allstate also offers an EZ Pay Plan Discount for people who set up automatic payments, so that’s another way to save money by getting set up to avoid payment lapses.

You can manage your payments online, by phone, or through the Allstate mobile app. You’re able to update billing information, suspend an automatic payment for one cycle, change the date of your automatic payments or cancel them altogether.

But of course, with any of these options, you need to make sure you are still paying on time to avoid going into the grace period or having your coverage canceled.

MORE: How do I get car insurance for about $50 a month?

Allstate insurance grace period for new cars

Allstate also offers a grace period for drivers who have just bought a new car to get it insured. Of course, this only applies to existing customers and has to extend the coverage you already have to this new vehicle.

Again, it’s better not to use this grace period, not least because you are meant to have insurance in place before you drive this new car off the lot, plus a new vehicle is likely to have higher premiums than an older one.

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