What is the deadline to renew car insurance?

Many drivers mistakenly think there is a “grace period” to renew car insurance after it’s due date, inferring from the 30-day grace period some health insurance providers might offer. This is not true when it comes to car insurance. We want to share the low-down on why keeping your insurance policy active and in good standing is best for you, and your insurance rate.

A missed payment

Whether you are paying for your insurance in monthly installments or if you are going to renew car insurance every 6 months, if you miss making a payment on the due date you will likely be given a “cancellation notice” – a written letter from your insurance provider notifying you that your auto insurance policy will be or has been cancelled due to nonpayment.

Are you wondering, “Can’t I just make a prompt payment so I can continue to be covered by my insurance provider?”

Again, the notion of a “grace period” does not apply when it comes to making a car insurance payment after the policy has been cancelled due to nonpaymen . The ability to retain coverage after receiving a cancellation notice by promptly making a payment varies by the rules of your state and by the practices of your insurance provider.

It is often challenging to get new insurance if you’ve had any lapse or have been dropped by another provider – and this is why it’s very important to make your payments on-time, every time. Please check with your insurance policy provider for specific rules and practices.

Here’s a tip: If you’re on a pre-paid card, be sure to reload it before your next monthly payment to avoid a lapse in coverage or non-payment/cancellation. Also, if you have a smartphone or tablet, do a search in the app store for your insurance provider’s official app. If you sign up for notifications, they may send you a push alert to remind you before a payment is due.

Typically, about 6 weeks before your insurance is slated to renew, your carrier will send you a reminder letter that a payment is due by a certain date via mail. If you’ve signed up for additional methods of communications, many carriers will also send an email, an automated or personal phone call, send a “push alert” to your mobile device if you have your carrier’s app installed and some companies may even send a text message to alert you that a payment is due.

Tip: If your credit card is lost or stolen during these 6 months, be sure to log into your insurance provider’s website or call them directly to update your credit card information.

How to avoid being cancelled

Almost all insurance companies will ask if you would like to have your policy set to “auto renew” which will automatically charge your payment method on file on the appropriate due date for your payments. By setting up an auto payment, you can be assured you won’t have a lapse in insurance coverage.

You are responsible for informing your insurance provider of any changes to the statement or conditions from your original policy. For example, if you were a teacher but are no longer, you would not be eligible for a teacher or educator’s discount. Failure to share certain changes that can impact your insurance can result in a rate increase or being dropped from your insurance company if you cannot provide proper documentation when requested by the insurance companies, like proof that you are, in-fact, a teacher.

Who is Answer Financial?

We don’t want to see any of you waiting to renew car insurance. Going without it is not only risky but it’s also illegal. As one of the nation’s largest and most reputable auto & home insurance agencies, Answer Financial has insured nearly 5 million homes and vehicles. We work with more than 40, top-rated carriers to save our customers an average of $565 a year on insurance. 

On our mobile-friendly website, shoppers can quickly compare rates and customize coverages from multiple home insurers. By simply entering your zip code and home address, Answer can search publicly available records like square footage and year built to deliver side-by-side comparison quotes from reputable insurance companies.

Answer Financial can help you compare, buy and often save the smart way on insurance. So before you shop, remember to rely on your insurance experts to find you the right home insurance plan for your needs and budget.