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QuestionInsurance Question  My neighbor was in a bad car accident. He was hit. When he called his insurance company, they told him he wasn't covered. To make a long story short, his wife was diagnosed with breast cancer and he and his family moved in with his parents. They left a forwarding address and he never received a bill or cancellation notice. Isn't there a grace period?

AnswerAuto Insurance Answer

All insurance companies are required to notify the named insured with an intent to cancel notice for non-payment of premium. The amount of time varies from state to state, but in most cases a 10 day "Notice of Intent to Cancel" notice is required to be sent to the insured. In addition, these notices are required to be sent with "Proof of Mailing".

There is no grace period for paying auto insurance premiums after the cancellation date. State law sometimes mandates a grace periods, but with auto insurance there is usually not a grace period.

You could check with your State Regulator to determine the specific rules that apply in your state. A link to each state's regulator can be found at our web site. Please go to our State Regulator page to determine your state specific rule pertaining to your cancellation query.

If you or your neighbor are still in need of auto insurance please visit our site to get a car insurance quote. After you enter your zip code follow the pages to get a great rate.

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