A car insurance “grace period” allows you to keep auto coverage for a certain amount of time after you miss a payment. If you don’t pay your premium during the grace period, your policy will be cancelled.
Car insurance grace periods are slightly different from new car insurance grace periods.
Car insurance grace periods explained
If you miss a payment, your provider will notify you and explain how much time you have to pay your bill before you lose coverage. This is your grace period. As long as you make the full payment before the grace period ends, your policy won’t be cancelled.
You can make a payment during the grace period the same way you would an on-time payment. Generally, these payments can be made online, by phone, or by mail. Some insurers may charge a late fee.
Learn more: Geico’s grace period
How long is a grace period?
If your insurer offers a grace period, you could have up to 20 days to make a payment before you lose coverage. The amount of time will depend on your state and insurance provider.
Check your policy documents to confirm how long you have to make a late payment before losing your coverage.
Learn more: California’s car insurance grace period
What happens if you miss a payment?
If you miss a car insurance payment, you risk having your policy canceled. While grace periods give extra time to get your payments on track, not all insurers offer them.
If you miss your payment after your grace period ends, your policy will be canceled. Your provider is legally obligated to provide a notice of cancellation before they can cancel your policy due to nonpayment.
Driving without car insurance is illegal in most states, and if you’re caught, your vehicle could be impounded and you could be charged fees or even go to jail. Plus, if you drive uninsured and cause an accident, you’ll be financially responsible for all injuries and property damage you cause.
Also, insurance companies typically charge more for drivers who are caught driving without insurance, because you’re viewed as riskier to insure if you have a car insurance lapse.
How to avoid missed payments
You can avoid the grace period altogether by keeping your payments on time. Try these tips to avoid missed payments.
Pay your policy in full. Insurers typically give a discount if you pay your policy in full at the start of the policy term. Plus, you won’t have to worry about monthly payments.
Set up automatic payments. Not only will you pay your bill on time, but many insurers offer a discount for customers with automatic payments set up.
Set up phone reminders. Use your phone to set up calendar reminders so you can make your payment on time.

Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.

Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.