Insurance Grace Period

You’re late paying your insurance premium. It was due on the first of the month. Now it’s the eighth and you’re...panicked.

Is your insurance canceled? You start making plans to lock yourself into a padded room until you can get some new insurance. Then you remember something: the grace period.

The grace period represents an amount of time where the company lets it slide if you're late for a payment. Your money hasn't arrived by the prescribed due date, but you aren't canceled instantly. Your insurance doesn’t lapse until after the grace period expires (typically 30 days, but it depends on the policy).