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 is a car insurance lapse grace period?

A car insurance lapse grace period is a specific amount of time after the premium is due when a policyholder can make a payment without coverage lapsing, says Nick Shrader, an insurance agent for Texas General Insurance. So, what is an insurance lapse? A lapse in coverage occurs when your car insurance policy gets canceled for non-payment.

Do insurance companies have grace periods?

Insurance companies are legally required to provide grace periods in case a policyholder can’t make a timely premium payment. The specifications of grace periods depend on factors such as the type of insurance, your insurance company, and your state’s laws.