Like all insurance policies, auto coverage depends on making your premium payments on time. Fortunately, most car insurance companies provide a grace period, so you won’t automatically lose your coverage if you miss a due date. Below is an overview of grace periods and what could happen if you fail to make a payment.

What Is the Grace Period?

A grace period is a short window after a policy lapses during which you can still renew without losing benefits. Whether you’re going through financial difficulty or simply forgot to pay the bill, this grace period can help prevent serious consequences.

How Long Is the Grace Period?

Grace periods vary between car insurance companies and may even differ from one policy to the next. Some insurers may give drivers up to a week to pay their bills, while other car insurance companies don’t offer grace periods at all. When purchasing coverage, read the fine print carefully and be sure you understand the carrier’s late payment policy.

What Are the Benefits of the Grace Period?

A grace period can keep your policy from lapsing, potentially saving you hundreds of dollars and preventing serious legal issues. Car insurance companies typically charge higher premiums for drivers who have let coverage lapse in the past, so finding another carrier can be expensive.

Ohio also has serious legal penalties for drivers who don’t have insurance. Depending on your record, you may lose your license and be charged a $100 reinstatement fee after you get insurance. Your license plates may even be confiscated for 30 days, even if you obtain coverage immediately.

If you’ve had trouble getting insurance in the past, turn to the agents at 1st Choice Insurance. Their network of car insurance companies includes specialists who focus on providing SR-22 insurance and other policies for high-risk drivers. Visit their website for more on their insurance coverage or call (513) 860-0666 to speak with an agent at their office in Fairfield today.