Auto Owners Insurance Grace Period: What You Need To Know

Auto-Owners Insurance offers a grace period for new cars, giving existing customers seven days to officially add a new car to their insurance policy and purchase any additional coverage it may need. During this time, the new car will be covered by the existing policy. However, it's important to note that the new car will only be covered by the types of coverage already in place. Auto-Owners also provides a grace period of up to 30 days for payments, with specific timeframes varying based on state law. This allows policyholders to pay past-due premiums to avoid a lapse in coverage.

Auto-Owners Insurance has a grace period of 7 days for new cars

For example, if you have a liability-only policy and cause an accident, your insurance won't cover any damage to your new vehicle. In this case, you would need to purchase additional coverage for the new car within the 7-day grace period. It's important to note that the Auto-Owners new car grace period only applies to existing customers.

If you are a new customer without an active insurance policy, you must purchase coverage for your new car before driving it off the lot to avoid driving uninsured. You will need to provide the company with the vehicle identification number (VIN) and your personal information, including your driver's license number and SSN.

Auto-Owners Insurance also offers a grace period of up to 30 days for payment of insurance premiums, with specific timeframes varying by state law. During this grace period, policyholders can pay their past-due premium to avoid a lapse in coverage. If the grace period ends without the necessary payment being made, Auto-Owners will cancel the policy and charge a late fee.

Auto-Owners has a grace period of up to 30 days for payments

The grace period serves as a buffer to provide policyholders with some flexibility in the event that they are unable to make a payment by the due date. However, it is important to note that even if the policyholder pays the balance within the grace period, Auto-Owners will still charge a late fee. Therefore, it is advisable to make payments on time to avoid incurring additional charges.

The length of the grace period offered by Auto-Owners is relatively standard within the car insurance industry. Most car insurance companies offer grace periods ranging from 3 to 30 days, with some companies, like Nationwide, offering as few as 3 to 5 days. It is worth noting that grace periods can also vary depending on the type of insurance. For example, typical grace periods are 7 days for auto insurance and 31 days for life insurance.

In certain circumstances, such as during the COVID-19 pandemic, insurance companies may offer extended grace periods or other forms of financial assistance to provide relief to customers facing financial difficulties. These extensions are typically in the form of time extensions, rather than forgiveness of payments. Therefore, while a longer grace period can help to ease the financial strain, the total bill will continue to accumulate.

Auto-Owners will cancel the policy if the grace period ends without payment

Auto-Owners Insurance does offer a grace period for late payments, but it is important to understand the conditions and limitations of this grace period. While the specific timeframe may vary by state law, Auto-Owners provides a grace period of up to 30 days for policyholders to make their past-due premium payments and avoid a lapse in coverage.

However, if the grace period ends without the necessary payment being made, Auto-Owners will cancel the policy. Even if the policyholder pays the balance within the grace period, Auto-Owners will still charge a late fee. Therefore, it is essential for policyholders to prioritize making timely payments to avoid cancellation and additional fees.

The consequences of a cancelled policy can be significant. Driving without insurance is illegal in almost every state, and getting caught can result in tickets, fees, fines, and even the loss of your license. Additionally, when signing up for a new policy after a cancellation, you will likely face higher rates.

To prevent your Auto-Owners policy from being cancelled, it is advisable to reach out to the company as soon as you realize you may miss a payment. Auto-Owners billing representatives are available to discuss options such as deferring the minimum amount due, changing your due date, adjusting your payment plan, or offering a payment extension. By being proactive and communicating your situation, you may be able to find a solution that meets your needs and avoids cancellation.

Auto-Owners offers a multi-vehicle discount

Auto-Owners Insurance offers a multi-vehicle discount to customers who insure two or more private passenger vehicles under the same policy. This discount is applied automatically, but it does not increase with the number of vehicles insured. The discount is a great way to save money, especially as the cost of insuring multiple vehicles can be high.

The multi-vehicle discount is a common feature offered by insurance companies. It is usually applied as a percentage reduction on the liability, collision, and comprehensive portions of the insurance premium. The percentage discount varies by insurer, but it is typically between 10% and 25%. For example, GEICO offers up to a 25% discount, while Progressive offers an average of 12%.

In addition to the multi-vehicle discount, Auto-Owners Insurance also offers other ways for customers to save money, such as the multi-policy discount, safety feature discount, and good student discount.

The multi-vehicle discount is a great option for those insuring multiple cars, as it can help keep insurance rates manageable. It is important to note that the discount does not compound with the number of vehicles insured, so the percentage discount remains the same regardless of how many vehicles are added to the policy.

Auto-Owners customers can discuss options like changing their payment plan or getting a payment extension

Auto-Owners customers can contact billing representatives to discuss options for assistance with their insurance payments. This includes changing their payment plan or getting a payment extension.

Changing the Payment Plan

If you are an Auto-Owners customer and are facing temporary financial difficulties, you can call billing representatives to discuss changing your payment plan. They are available Monday through Friday from 8:00 am to 6:00 pm EST at 1-800-288-8740. They can help you explore options to make your payments more manageable.

Payment Extension

If you are experiencing a financial hardship that may last longer, you can also discuss the possibility of a payment extension. A payment extension typically allows you to defer one or two monthly payments to a later date, giving you some breathing room during challenging times. Keep in mind that your loan will continue to accrue interest during the extension period, potentially increasing the overall interest you owe.

It's important to reach out to your insurance provider as soon as you anticipate any difficulties in making payments. The sooner you contact them, the more options they may be able to offer to help you stay on track.

Additionally, Florida law states that insurance contracts must provide a grace period of at least 30 days for premium payments after the first payment. During this grace period, the policy remains in force, and any claims made will be settled minus any overdue premiums and interest.

Frequently asked questions