What is a car insurance lapse grace period?
Your car insurance policy won't be cancelled immediately because you miss a payment. Auto insurance companies are required by state law to provide notice before cancelling your policy. Depending on the state, you'll usually have between 10 and 20 days. Your company will notify you by mail or email before cancelling your coverage.
What happens if you miss a car insurance payment by a few days?
Auto insurance companies typically offer a grace period for missed car insurance payments, so a payment that's a few days late shouldn't pose a problem. Make your payment as soon as possible, as the car insurance grace period can vary depending on your insurer. When you sign up for Progressive's automatic payment option, you'll earn a discount on auto insurance and avoid missing a future payment.
Learn about grace periods for purchasing a new vehicle.
Consequences of a car insurance lapse
License suspension or fine: In some situations, the department of motor vehicles in your state will be notified that you are without insurance. They can then suspend your license or fine you. You may also be required to carry an SR-22 for several years, which is an added expense on your next auto policy.
Rate increase: Even one day without coverage can result in a higher car insurance rate, depending on the circ*mstances. Starting a new policy is usually costlier than staying continuously insured. At Progressive, you may not be eligible for our Continuous Insurance Discount if you have gone more than one month without insurance.
Repossession: Your vehicle could be repossessed by your lending or leasing company. Most lenders require comprehensive and collision coverage on the vehicle as part of the terms of the loan or lease.
What if I no longer need car insurance?
If you're not driving, you obviously won't need auto insurance. Perhaps you'll be traveling out of the country, biking, or just bumming rides off friends. Keep in mind, that if you get behind the wheel again, you might pay an increased rate. That's because insurance companies may consider you a riskier driver than those who keep active policies.
Car insurance lapse for military personnel
At Progressive, you'll still get our Continuous Insurance Discount if you had a gap in insurance because you were deployed overseas.
Can my other insurance policies lapse?
Yes, your other insurance policies can lapse. A lapse in home or life insurance often occurs when you stop paying the premium.
