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 Posted: Mon Jul 13, 2009 7:52 pm Post subject: How many day normally a contract would provide after duedate |
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| How many day normally a contract would provide after due date during which the insureds coverage remains active, even the premium was not paid. |
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balavittal
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| Posted: Tue Jul 14, 2009 4:44 am Post subject: |
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Hello Balavittal ,
| Quote: | | How many day normally a contract would provide after due date during which the insureds coverage remains active, even the premium was not paid. |
I think that you are talking about the grace period. Normally, the company would allow 30 days after the due date within which the policy holder is required to make the payment in order to continue with the coverage. After the expiration of the grace period the coverage would lapse.
Payment made within the grace period wouldn't attract any penalty as well.
Have you checked with your insurance policy? Does it say otherwise?
Thanks,
Rupert |
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RupertWBradson
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| Posted: Tue Jul 14, 2009 11:36 am Post subject: |
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| Quote: | | coverage remains active, even the premium was not paid. |
| Quote: | | Normally, the company would allow 30 days after the due date within which the policy holder is required to make the payment in order to continue with the coverage. After the expiration of the grace period the coverage would lapse. |
Nope, not on an auto policy...or none I've ever seen, or any state I've ever read about..I've never seen an auto policy (or any P&C policy for that matter) with ANY grace period. Some allow ten days if the premium is paid in that period there is no interuption in coverage...meaning if day eleven comes then the policy is lapsed, back to the end of the term, and a reinstatement or new policy will be required. So to answer your question...the auto policy premium is due when it's due...there is NO grace period. Read your policy the terms will be in it.
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Lori
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| Posted: Wed Jul 15, 2009 7:17 am Post subject: |
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Hello Balavittal,
Rupert and Lori both are right with their respective answers. A grace period is normally available with life insurance policies. Hence, you need to tell us which type of insurance policies you are talking about.
No law requires the P&C providers to offer you grace period after the premium is due. However, still some insurers may take a lenient stand depending on their policies. But IMO it's always better to be proactive and pay the premium before the due date.
~Jeremy |
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JeremyHolter
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| Posted: Wed Jul 15, 2009 3:31 pm Post subject: |
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| Your question is in auto insurance so I assume so and in my opinion there is no grace period allowed. |
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Neetalia
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