What is a car insurance grace period?

The car insurance grace period gives you additional time to make up your missed payment without your policy getting canceled. During this period, your policy remains active and you have continuous insurance coverage. Your policy won't lapse as long as you make the payment in full before the grace period ends.

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.

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.