In New Jersey, is there a grace period after a policy has been cancelled by the insurance company? Also, does an insurance company have to send a letter certified mail to let the insured know about the cancellation?

According to the Consumer Guide for Auto Insurance published by the New Jersey Department of Banking and Insurance (DOBI), there is not grace period for auto insurance policies that have lapsed or terminated. Under current regulations, companies must provide notice of payment due dates according to what type of payment is due.

If your insurance company cancels your policy for non-payment you should receive a 15 day warning notice. For all other reasons you should receive a 20 day warning notice. While insurance laws require an insurer to provide proof that a notification was mailed, they are not required to mail any notice "certified" or "return receipt."

If you insurance is canceled or non-renewed, you can file an appeal with the NJ DOBI. This department cannot guarantee your reinstatement so they advise to shop for alternative insurance during this process.

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