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Grace Period for Car Insurance

What is a car insurance grace period?A grace period is a certain time frame during which you do not get penalized with extra fees for missing the payment due date. The answer to the question of having a car insurance grace period depends on what you mean by grace period.

If you are asking how long you can go after buying a new car without car insurance, the answer is there is no grace period. If you are wondering what the grace period is if you miss a payment, well that depends on the car insurance company.

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10 or 15 years ago, before the advent of the Internet, you usually had 3 days to show proof of insurance after you purchased a new or new to your vehicle. That is because it was impossible, at that time, to purchase car insurance on the weekends or after hours because agents only worked Monday through Friday 9 – 5.

Today, however, you can purchase car insurance 24/7, which means that there is no excuse for you not having coverage when you purchase a new vehicle. Most car insurance companies allow you to purchase your new policy online. Those that don’t generally have someone on call anytime of the day or night.

On the rare occasion that your current car insurance company doesn’t have a 24/7 services, but you already have a car insurance policy with them, most states will allow that policy to cover you until your insurance company opens again for business.

You don’t want to mess around and try to keep your old policy on your new car. If you have an accident the car stated on your policy is the car that is covered in the accident. If you just purchased the vehicle you insurance company should make an exception. However, after 3 days they will not make an exception at all.

I missed my car insurance payment, what is the grace period for that?

How can I find out my car insurance grace periodThis is a tough question to answer because every insurance company is different. However, every insurance company is required to send you a notice of cancellation before they cancel your car insurance. In most cases, this notice must give you 10 days to pay.

If you have a long term relationship with the car insurance company, it is possible that they will work with you if you can’t make a payment. Some insurance companies will split the payment into several smaller ones, adding them to your future payments. Others will simply give you an extra week or two. But, if you do this all the time, most companies won’t work with you.

Some insurance companies will simply carry on your policy for an additional 30 days and if you don’t pay send you the required notice. Some people actually carry their policy 30 days late at all times. When comes time to renew, however, most insurance companies will give you a pass if you are a regular late payer.

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I can’t manage my current car insurance payment, what should I do?

If you can’t manage your current car insurance payments, there are two things that you should do. First of all, call your insurance company and see what they can do to lower your rates. Some insurance companies will work with you while others will tell you that you are out of luck.

The second thing you should do is to get car insurance quotes from a bunch of other companies.

You may see the commercials for getting free car insurance quotes and think they are a joke, but the truth is that they can really save you money.

One example of this is a woman who was with Progressive. After a car accident her insurance rates doubled. After three years she was still paying about $40 more a month than she was before her accident. On a whim, she decided to use a free quote tool. She got a quote from GEICO for $60 less than what she was currently paying, she was shocked!

grace period auto insuranceAfter calling GEICO and verifying that this would actually be her rate, she made the switch. A year later, she is paying $30 less than what she was paying at Progressive when she had a clean driving record for the exact same coverage amount. Getting a quote can make a real difference on your policy.

If you don’t already have the minimum legal coverage, consider this option, even though it isn’t a perfect one. It is better to have the lowest possible coverage than to not carry any insurance at all.

If you can’t work things out with your insurance company and you simply can’t afford insurance at all, then you need to consider other transportation options. It may stink to have to get rid of your vehicle but you should not drive without insurance. Not only is it illegal, but it isn’t fair to other drivers either.

What’s more, if you are in an accident, in many states if you don’t have insurance, the law allows for the other insurance company to refuse to pay for your damages, even if you aren’t at fault for the accident! Some states are getting so strict that if you drive without insurance and you cause an accident, you will be taken to jail!

Are there other ways to lower my insurance rate so I don’t miss a payment?

While it isn’t ideal, if you have the lowest amount of car insurance, your state allows and you still can’t afford your premiums, then you should consider one of these options.

  • grace period for car insuranceFirst, get a different car that costs less to insure. This isn’t a viable option for everyone, but if you can do this, you should consider it.
  • Another option is to raise your deductible until your premiums are in a price range you can afford. The downside to this method is that if you have an accident, you are going to have to come up with that deductible amount.
  • If you have teen or young drivers on your policy, consider refusing to let them drive your car. Nothing increases your rates faster than having a new driver drive your car. In addition, any bad driver on your policy will cause your rates to increase.
  • Talk to your insurance agent and ask them why your rate is what it is. If you have a clean driving record and no one else driver your vehicle, then you shouldn’t be paying an arm and a leg for your insurance if you are driving an average vehicle.
  • If you don’t drive a lot, then you need to ensure that your insurance company is aware of this. Most insurance companies offer low mileage discounts for people who drive less each year. If you have the opportunity to park your vehicle in a secure area, you should be able to get a lower insurance rate for that as well.

You should also make sure that you are getting all of the discounts that you qualify for. If you have multiple policies with a company, then you should get a discount for that. If you have a college degree or are married, you should get discounts for that. If you don’t, it’s time to switch companies!

What happens after I receive a car insurance policy cancellation notice?

When a car insurance provider decides to cancel a policyholder’s car insurance policy they will send that policyholder a notice in the mail. This notice will inform the policyholder why their car insurance policy is being canceled and how long they have until they will no longer be insured.

If it is possible for the policyholder to keep their car insurance policy with this car insurance provider, they must make a payment within this grace period. If they are unable to rectify the situation with their car insurance provider, they have that amount of time to find a new car insurance provider before they will be driving without coverage.

car insurance grace periodIf the policyholder does decide to go to a different car insurance provider for coverage it is important for them to remember to cancel their other car insurance policy. The policyholder is usually entitled to some type of refund if they leave their car insurance provider before their policy has expired.

What are the effects of having my policy cancelled by my car insurance provider?

Having a car insurance policy canceled by the car insurance provider can affect a policyholder in many ways. One is that the previous cancellation can make it very hard for the policyholder to find a new car insurance policy at a good rate.

When the new car insurance provider sees that another company had issues with the policyholder they will be considered a higher risk to insure and that will most likely make their car insurance rates go up.

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