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.

Learn more:

What happens if you don’t pay your car insurance?

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

Learn more:

Why should I pay car insurance in full instead of monthly payments?

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.

Are high insurance rates making it hard to make payments?

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FAQ

How many days can you be late on your car insurance payment?

The length of a car insurance lapse grace period depends on the provider. Most insurers will offer a grace period of 24 hours to 30 days, but call your provider or look at your policy to confirm. After this period, it’s considered nonpayment, and you risk having your policy canceled.

Do you still have car insurance coverage during your grace period?

Yes—the grace period allows policyholders to complete their payment without being penalized, so your car insurance policy will remain active. However, if the payment isn’t made within the grace period, your policy will be canceled, and you will not have insurance coverage.

Meet our experts

Hillary Kobayashi

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.

Amy Bobinger

Licensed Insurance Agent — Expert Insurance Editor

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.