Typically there is no grace period for car insurance. State laws and insurance companies’ guidelines vary; if you do not pay before your due date, your auto insurance policy will terminate, and you will be without coverage. This applies whether you’re insuring a brand new car, a recently purchased used car, or switching insurance companies.
For example, Nevada’s Department of Motor Vehicles states very firmly that NV has no grace period in regard to car insurance. A one-day lapse in your insurance coverage in Nevada will result in a possible suspension of your registration. A fee of $250 will have to be paid to reinstate your registration privileges.
In Nebraska, there is a statute (NE Statute 44-516) that requires a company to give at least 10 days’ notice before canceling a policy due to non-payment, according to the Nebraska Department of Insurance. This is typical in most states for late payments but not for policy dates.
If your policy has been canceled and you want to have it reinstated after a lapse, and there are no specific insurance laws in your state regarding this. It is up to the insurance company’s discretion according to the rates and guidelines they have filed with the state.
You can check with your State’s Insurance Regulator to determine the specific rules that apply for how long after the due date your car insurance can be canceled if the premium is not paid and if the state has any grace period that auto insurance providers must grant you.
— Michelle Megna contributed to this story.
Resources & Methodology
FindLaw. “Nebraska revised statutes.” Accessed January 2023