Posted on: 20 January 2020
When you have car insurance and are on a plan to pay by the month, you will need to make sure you pay your bill every month on time. If you do not do this, you could end up facing some pretty steep consequences. Fortunately, your insurance policy may offer a grace period. This period of time is important to understand when you have auto insurance, and here are a few things to know about it.
What It Is
A grace period is something most insurance companies offer, but the time frame each company offers might be different. The main thing to know about a grace period is that it is a short period of time after your car insurance bill is due that you have time to still pay the bill without getting your policy canceled.
If, for example, your insurance is always due on the first of every month, you might actually have until the seventh of that month to pay the bill without fearing that the company will cancel your policy. Keep in mind, this is not something that is offered through all insurance policies, so make sure you know if you have a grace period or not before you decide to pay your insurance bill late.
There Might be a Fee
While your insurance company might generously offer you a grace period, there might still be a fee you have to pay if you use it. If you pay your bill late but within the grace period, your insurance company might charge you a late fee. You would have to pay this fee when you make your payment that month. Make sure you know if there is a late fee if you pay during this period and what the amount is, simply so you can prepare for it if you ever end up paying your bill during the grace period.
Why You Should Not Rely on It and Ways to Avoid Needing It
Having a grace period is great for times when you simply forgot to pay your bill, but it is not something you should rely on using each month. Instead, you should aim to pay your bills on time, and the best way to do this is by setting up automatic monthly payments for your auto insurance.
Driving without auto insurance is not a good idea and dealing with a canceled policy can be a huge headache. Talk to an auto insurance agent if you have any questions about car insurance coverage. For additional reading, look online.Share