)
)
Written byAthena Valentine Lent
)
Athena Valentine Lent is a finance columnist for Slate and the author of Budgeting for Dummies (Wiley, 2023). Her writing has appeared in BuzzzFeed, The College Investor, GOBankingRates, Money Under 30, and Keeper Tax among other places. Her personal finance blog, Money Smart Latina, won the Plutus Award for "Best Personal Finance Content for Underserved Communities" in 2020 and was nominated for "Blog of the Year" in 2022. When not working she can be found with her main man, a polydactyl cat named Harrison George.
)
Edited byAshley Cox
)
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
){kind=logo}
){kind=small}
){kind=small}
){kind=small}
)
Data reviewed byKonstantin Halachev
)
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Table of contents
When money is tight, the last thing you want to do is lose your car insurance. Fortunately, many insurers offer grace periods, allowing you to maintain coverage for a period of time so that you can make up for a missed payment. A car insurance grace period can also refer to an insurer allowing temporary coverage in good faith for a newly purchased vehicle.
Here’s what you should know about car insurance grace periods, including how long they last and what to do if your policy lapses.
Find Cheap Car Insurance
Liability rates start as low as $42 per month
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
What is a grace period in car insurance?
If you’re late in making a payment, your car insurance company may extend you a grace period. A car insurance grace period is the time that an insurer allows you to still have coverage after missing a payment, usually seven to 30 days.
Suppose you can’t make a payment or accidentally forget to pay. In that case, you can take advantage of your insurer’s grace period until you can make arrangements. But make sure to make a payment or contact your insurer before the grace period ends. If you wait too long, your insurer will likely cancel your coverage, leaving you uninsured.
You may also have a car insurance grace period when purchasing a new vehicle.[1] To drive your vehicle off the lot, you need car insurance. A new car insurance grace period provides temporary coverage to your new vehicle when your insurance company can’t change your policy right away. The coverage you have for your old vehicle temporarily applies to your new vehicle.
)
What Is Proof of Insurance?
How grace periods work
Grace periods can work in one of two ways:
Grace period after a missed payment: When you’re late or skip a payment, a car insurance grace period is the time in which your insurance company allows you to pay before canceling the policy.
Grace period for a new vehicle: You need insurance to drive your vehicle off the lot. A new car grace period is temporary coverage for up to 30 days until you add your new vehicle to your policy. This coverage can be through your current insurance policy in good faith. The dealership can also provide it if your insurance company can’t.
The car insurance grace period allows you to drive your vehicle with adequate coverage until you can make a payment arrangement. Continued non-payment after your grace period ends can result in the termination of your car insurance policy.
How long does a grace period last?
Car insurance grace periods vary by insurance company. Here are some examples of common grace periods:
Insurance Company  | New Car Grace Period | Late Payment Grace Period |
|---|---|---|
| Allstate | 30 days | 30 days |
| GEICO | 30 days | 9 days |
| Nationwide | 30 days | Contact local agent |
| Progressive | 30 days | Dependent on policy |
| State Farm | Varies by state | 10 days |
Remember to read the fine print. Some policies may allow up to 30 days, but others have shorter grace periods or none at all.
What happens if your car insurance lapses?
Your insurance company may be legally required to inform your DMV if your insurance lapses. Driving a car without insurance coverage is illegal, and the consequences vary from state to state.[2]
A lapse in coverage can result in registration or driver’s license suspension. Suspension of your license and registration may require additional insurance coverage, such as an SR-22 certificate, to reinstate your driving privileges.
A lapse in an auto insurance policy can also negatively affect your finances if you’re in a car accident. Without car insurance, you’re responsible for any property damage you cause. You can also be on the hook for other costs associated with the accident, such as medical expenses.
How to reinstate your car insurance after it lapses
If your car insurance lapses, follow these steps to reinstate your policy:
Contact your insurer. Contact your insurance company to talk about your situation. Find out the reason for your policy cancellation. Your insurer may give you a grace period and work with you to get caught up on any payments (if it canceled your policy for non-payment).
Pay any outstanding balance. Your insurer may reinstate your policy as soon as you catch up on your payments. But you may have to pay late-payment fees.
Meet waiting period requirements. If your insurer canceled your policy due to a suspended license, you may need to provide documentation to resolve the issue and wait for a certain amount of time before your coverage can become active again.
Reinstate your policy. Once you’ve met your insurer’s requirements and provided any necessary documentation, you should be able to reinstate your car insurance policy.
If your current insurer won’t renew your policy after it’s lapsed, compare quotes from three to five insurance companies to find a new policy that meets your budget and coverage needs.
Find Car Insurance After a Lapse in Coverage
See quotes from top insurers in minutes
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
How to lower your car insurance rates
You can take steps to get a more affordable insurance payment, including:
Ask for discounts
Most insurance companies offer discounts for the military, first responders, students, loyal customers, and people with a clean driving record.
Bundle insurance policies
If you need more than auto insurance, consider bundling your policies. You can bundle homeowners, renters, and life insurance policies with auto for a lower rate.
Increase your deductible
A deductible is the amount you owe for an insurance claim before coverage kicks in. Consider increasing your deductible amount to lower your monthly premium.[3]
Get rid of excess coverage
Another way to reduce your monthly payment is to eliminate any extra insurance you no longer need, such as comprehensive coverage or gap coverage.
Compare quotes
Contact other insurance companies to see what rates they’re offering. You could find an overall lower rate but also new customer discounts, among other savings.
Car insurance grace period FAQs
Below, you’ll find answers to some of the most commonly asked questions about car insurance grace periods.
Can you drive a new car off the lot without insurance?
No. You can’t drive a new car off the lot without insurance. It’s illegal to drive a car if you’re uninsured. You may purchase a vehicle without prior insurance authorization, but you must have proof of insurance to leave the lot.
Are you covered if you have an accident during a car insurance grace period?
Yes. You still have the same coverage during your grace period. Unless your insurance has lapsed, you’ll be covered if you’re in a car accident. For further assistance, call your insurance company for details.
Can you extend a car insurance grace period?
It depends. You’ll need to talk with your insurer and explain your situation to see if it’ll offer an extension. You may qualify for a financial hardship program for a few months.
What happens if you pay your car insurance late?
You’ll still have insurance if you pay your car insurance bill before the cancellation date, but routinely making late payments can raise your car insurance premium and result in penalties or a late fee. Making late payments in some circumstances can also reflect on your credit report, lowering your score and further increasing your car insurance premiums.
Is it better to cancel car insurance or let it lapse?
Neither is ideal, as canceling your car insurance without securing a new policy is still considered a lapse in coverage. Canceling your car insurance may also not be an option, depending on state laws or vehicle financing. Your insurance premiums may also be higher when you sign back up. In both cases, consider reducing your coverage instead of terminating a policy.
How long can you pause car insurance if you’re not driving?
You can’t pause a car insurance policy. But some insurers may allow you to suspend or reduce your coverage for up to 30 days. Contact your insurer to discuss your options.
Related articles
)
How to Shop for Car Insurance
December 11, 2025
)
Lapse in Car Insurance Coverage: How Are Rates Impacted?
December 11, 2025
)
Same-Day Car Insurance: How to Start a Policy Today
December 11, 2025
)
How to Switch Your Car Insurance in 6 Steps
February 27, 2024
)
Can You Pause a Car Insurance Policy?
October 19, 2023
)
Can You Reinstate a Canceled Car Insurance Policy?
December 11, 2025
)
Nonrenewal vs. Cancellation: Can Car Insurance Drop You?
December 11, 2025
)
How to Cancel Your Car Insurance
December 11, 2025
Sources
- Experian. "What Is a Car Insurance Grace Period?."
- National Association of Insurance Commissioners. "A Consumer's Guide to Auto Insurance."
- Insurance Information Institute. "Understanding your insurance deductibles."
)
Athena Valentine Lent
Athena Valentine Lent is a finance columnist for Slate and the author of Budgeting for Dummies (Wiley, 2023). Her writing has appeared in BuzzzFeed, The College Investor, GOBankingRates, Money Under 30, and Keeper Tax among other places. Her personal finance blog, Money Smart Latina, won the Plutus Award for "Best Personal Finance Content for Underserved Communities" in 2020 and was nominated for "Blog of the Year" in 2022. When not working she can be found with her main man, a polydactyl cat named Harrison George.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.