What is grace period in Insurance?

by Guest » Fri Nov 15, 2013 07:00 am
Guest

What is meant by grace period in Insurance? Is this some kind of extension? I’m already having an auto insurance policy with GEICO, which is going to end on 19th of this month. If there is any kind of grace period associated with auto insurance, would I be able to make use of it? I really need it!! There is no clue in the papers. Should I ask my broker? We are no longer in good terms actually. Thanks for any help!

P.S: I'm in TX.

Total Comments: 2

Posted: Fri Nov 15, 2013 01:26 pm Post Subject:

The grace period is only the extended period of time that you have to make a premium payment beyond the due date. If the payment is not made by that time, then the policy cancellation is effective when it stated it would have cancelled (which is a date prior to the grace period date).

So if the payment is due on 11/19 and the grace period if until 11/29, if you don't make the payment by 11/29 the policy cancel 11/19.

Posted: Fri Nov 15, 2013 09:15 pm Post Subject:

Should I ask my broker? We are no longer in good terms actually.

Find a new agent or broker if you are not satisfied with the one you currently have. You are not a slave to the broker.

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