How late can you be on a car insurance payment?

The grace period for auto insurance payments is different for every policyholder. "Depending on the insurance policy, the grace period can be as little as 24 hours or as long as 30 days," says Shrader. Check your car insurance policy if you're wondering how late you can be on a car payment.

What is a car insurance grace period?

A car insurance grace period is the amount of time you have after a missed payment to pay your premium before your policy is canceled. Many car insurance companies offer grace periods of between 3 and 30 days after your missed payment, and they’re required to notify you before canceling your policy for nonpayment.

What if my insurance doesn't have a grace period?

If your insurer doesn’t have a grace period, you must add your new car to your policy before driving off the lot. In most states, driving without insurance, even for a short period of time, is illegal, and you could face penalties if you do not switch coverage to your new car.