Is there a car insurance lapse grace period?

After you miss a payment, you’ll typically have about a 10–15-day grace period before your policy is canceled. However, if you miss a payment to renew your policy, your policy could automatically expire at the end of the term.

Most states have laws that protect you from having your insurance policy canceled without advance notice from your insurance provider. This helps ensure you continue to meet the minimum insurance requirements with at least liability coverage.

In most cases, your insurance company will send you a cancellation notice when you miss a payment and let you know if you have time to make a payment to avoid a lapse. If you’re not signed up for paperless billing or bill alerts, this notice will probably come in the mail, meaning you’ll have less time to make your payment once you receive it.

If you miss a renewal payment, your insurance company might not send a cancellation notice at all. The details of your insurer’s missed payment notification policy are in your contract. Review those details—or get in touch with your insurance provider—to help avoid a car insurance lapse.

Can I pay my car insurance 1 day late?

You typically have 10-15 days after a missed payment before your auto insurance is canceled, so if you make a payment one day late you may be able to avoid a lapse. If you miss a renewal payment, however, your policy could automatically expire at the end of the term.

Keep in mind, whether or not your insurance does lapse, missing a payment—even by a day—will likely incur late fees, and you’ll still need to pay for the time that you’re insured after the missed payment.

If you miss a payment, contact your insurance provider right away to work through your options. Dairyland representatives are available 24/7 to help get your payment questions answered.

Do late car insurance payments affect credit?

If you have an outstanding balance on your car insurance policy for long enough, your insurance provider could send your information to debt collections. Debt collection reports show up on your credit report, so it could have an impact on your credit.

Can I drive my car while my insurance is lapsed?

Don’t drive your vehicle while your coverage is lapsed. Each state has its own minimum insurance requirements, and the consequences of getting caught driving while lapsed can be severe.

What are the consequences for a lapse in car insurance coverage?

Depending on where you live, the consequences can range from fees (due to making a late payment) all the way to jail time (if you’re caught driving without insurance).

• Life-altering accident costs: The reason it’s important to resolve a lapse in coverage immediately is that, by definition, you aren’t covered by car insurance. Not having car insurance—especially liability coverage, which is required in most states—exposes you to numerous risks including being personally liable for any damages you may cause while operating your vehicle during this time.
• Penalties: If you’re caught driving without insurance in states like South Carolina, penalties can be severe, including:
  • Your license being suspended
  • Your license plates being seized
  • Jail time
  • Fines
• Rate increases: Once you restart your policy, your premium may be higher depending on how long you go without coverage. If you miss a payment by even one day, your insurer may charge a flat late fee due to the lapse in coverage following your grace period.

Additionally, if your insurance does lapse, you’ll likely be considered a high-risk driver and have a more expensive premium once your insurance is restarted. As a high-risk driver, many states will also require you to get an SR-22 to prove that you’re insured.

• Impact on your driving record: In many states, such as California, auto insurance companies are required to notify the Department of Motor Vehicles about your lapse in coverage, who may note it on your driving record.
• Difficulty resuming coverage: Depending on the circumstances of your lapse in coverage, some insurers might view you as too high of a risk and deny coverage to you altogether.