Is this true with car insurance?

Question

is there a grace period given when one can't make their car insurance payment on time due to not having the money until the following week ?

Answer 1

it is true that there is a grace period with insurance BUT...and I stress this once that grace period is up you have to start from the beginning and get a new policy...it is VERY risky, I would suggest that you call the insurance company and tell them that you are waiting on your paycheck next week.  work with them and they will keep your policy in force.  If you simply rely on a grace period and there is anything that goes wrong you can and likely will end up without a policy.  some companies will allow you to make a very small payment (like 20.00 as a "good faith" and then wait until the next week to collect the balance.

The insurance industry has very specific rules and rights when it comes to payments and basically if you miss a payment on any insurance policy and exceed the grace period *it is usually 5-7 days* they can immediately cancel your policy and all of the payments you have made become theirs and you have to start over again (down payment and all future payments)

Answer 2

It mostly depends on your state regulations. The company I work for has a 2 week grace period(as required by state law). Even if you miss your due date, we won't cancel you until the 2 week period has expired. Trust me, many people know this and use it to their advantage every renewal. You should ask a company rep to be sure. They won't cancel you for asking!

Answer 3

It really isn't a grace period. Your premium is due when your policy renews. If the company does not receive your payment by the due date your policy will be canceled. The company sends you a cancellation notice. However, all states require an insurance company give advance notice of a cancellation therefore the effective date of your cancellation might be 5 to 10 days after the original due date.

If your payment is recorded by the company before the cancellation effective date most companies will reinstate your policy. But if it is even a day after the cancellation date you have to start all over again by applying for a new policy.

The "good faith" payment suggested by Stock Trdr will not work as your policy is billed by an insurance company computer that is programmed to initiate a cancellation if the payment due is not received.

Answer 4

Talk to your insurance agent and explain the situation.  Most are usually willing to work with you.  The contact is very important as they don't look very highly on someone who just doesn't pay the bill.

Also, a good resource is...

http://www.safelinked.info/go.php?link=i...

Best of luck to you.

Answer 5

Hate to disagree, but most auto insurers don't have a grace period.  If you miss your payment date, you are technically in a cancellation period.  If a claim occurs during that period, they company has every right to deny the claim.  

Most people think that there is a grace period because they will reinstate your policy if they receive a payment within a certain period of time after the due date.  If they don't receive a payment, they will terminate the policy and you would have to reapply for insurance.