The grace period is an extra period of time by which a policy is extended even if you haven’t formally renewed it. Insurers understand that many of their customers are busy people and leave payments up to the last moment. And when not everything goes as planned, they may end up with their insurances lapsed for only of a few days missed.
Grace periods vary from one company to another and there are no minimum requirements from a legal point of view. However, the insurance company has to mail you a cancellation notice before they can cancel your policy, and you will have at least an extra ten days from the receipt of the notification.
If you are unable to make a payment you are highly advised to call the insurance company and ask for an extension. Grace periods aren’t always clearly written in the contract, and asking for a few days of extension is a reasonable request no one will deny. Most companies will offer grace periods between seven and fifteen days, while others will go up to a whole month.
It’s important to note that you are still insured in the grace period – should anything happen, the policy will work – and the insurance company won’t ask for late payment fees when you renew your contract.