U.S. Auto Insurance Grace Periods: Understanding Usaa's Late Payment Policies

USAA, an auto insurance company, offers a grace period for late payments. The company, founded by military members, provides a 30-day grace period before cancelling policies. This period allows customers to make outstanding payments without penalty, as long as they have no history of delinquent payments. However, a late fee of $2 to $15 will be charged if the bill is not paid before the next statement. It is important to note that a lapse in coverage due to missed payments can result in serious consequences, including fines and license suspension.

USAA's grace period for late payments

USAA does offer a grace period for late payments. The company gives policyholders who pay monthly until the end of the next billing cycle to pay any outstanding balance, as long as they have not been delinquent on payments in the past. If you pay your bill before the next statement, a late fee of $2 to $15 will be added to your premium for the following month. If the grace period ends without the necessary payment being made, USAA will cancel the policy.

The grace period for late payments is typically 30 days, after which your insurance will be cancelled. However, this may vary depending on the state. For example, New York does not permit grace periods on any type of insurance.

USAA's new car grace period

USAA offers a grace period for late payments, which is typically 30 days. During this period, policyholders can pay any outstanding balance without incurring penalties. However, if the grace period ends without the necessary payment, USAA will cancel the policy. It's important to note that a lapse in coverage can lead to serious consequences, including fines and license suspension.

In addition to the grace period for late payments, USAA also offers a new car grace period. This grace period typically lasts between 7 and 30 days, depending on the state. During this time, if you already have an insurance policy for another car with USAA, your new vehicle will be temporarily covered by your existing policy. This coverage will extend to your new car if you get into an accident before updating your policy to include the new vehicle.

To confirm the specific grace period details for your location, it is recommended to refer to your USAA insurance contract or contact their customer support.

USAA's cancellation policy

When USAA sends a notice of cancellation, it will include the final date that they will accept full payment before coverage lapses. It is important to make the necessary payments before this date, as a lapse in coverage can lead to serious consequences, including fines and license suspension. A lapse in coverage also designates the policyholder as a high-risk driver, leading to more expensive insurance in the future.

To cancel a USAA auto policy, policyholders can call 800-531-8722.

USAA's high-risk driver status

USAA offers car insurance policies to current members of the military, veterans, and their families. It is rated as the best car insurance company by US News, which also rated it highly for customer service, claims handling, discounts, and as an insurer for senior drivers. WalletHub also notes that USAA offers a grace period for customers' payments.

USAA is also considered one of the best car insurance companies for high-risk drivers. High-risk drivers are often charged higher premiums and may struggle to find coverage. USAA is a good option for drivers with less-than-stellar credit or a history of accidents, speeding tickets, or DUIs. Its rates for these categories of drivers are often $1,000 lower than the national average.

According to MarketWatch, USAA is the best car insurance company for military members. It received high customer satisfaction ratings and was ranked highly in the J.D. Power 2022 U.S. Auto Insurance Study. However, USAA's insurance is not available to everyone.

USAA's low-cost insurance

USAA offers some of the lowest car insurance rates on the market. The company was founded in the 1920s by military members and has remained true to its founding values of service, loyalty, honesty, and integrity.

USAA's car insurance rates are consistently cheaper than those of its top competitors, even for drivers with blemishes on their records or senior drivers. Its average rate for a good driver is $1,364 per year, which is 33% cheaper than the national average. USAA also has the cheapest rates for drivers with a speeding ticket, an accident, or a DUI on their record.

USAA offers a range of coverage options, including:

• Bodily Injury Liability
• Uninsured and Underinsured Motorist
• Comprehensive Coverage
• Collision Coverage
• Roadside Assistance
• Rideshare Insurance
• Accident Forgiveness
• Rental Reimbursement
• Property Damage Liability
• Personal Injury Protection
• Car Replacement Assistance
• Glass Coverage
• GAP Insurance

In addition to its already low rates, USAA offers several discounts that can further reduce the cost of insurance, such as:

• Military Installation Discount: 15% discount if you park your vehicle on a military base
• Annual Mileage Discount: Discount for driving a low number of miles per year (available only for those over 29 years old)
• Driving Research Discount: Possible 5% discount for adding a plug-in device to your vehicle to track driving habits and aid in USAA's driving research program
• Premier Driver Discount: Discount for maintaining a good driving record for five years, also qualifies you for accident forgiveness
• Defensive Driving Course Discount: Discount for completing an approved defensive driving course
• Driver Training Course Discount: Discount for drivers under 21 who complete a driver education course
• New Vehicle Discount: Discount for vehicles less than three years old
• Good Student Discount: Discount for full-time students with a GPA of 3.0 or higher
• Family Discount: Discounted rate if a family member is also a member of USAA
• Automatic Payments Discount: Up to 3% discount for scheduling automatic payments
• Multi-Vehicle Discount: Discounted rates for insuring more than one vehicle

USAA also provides free instant quotes online, so you can easily get an idea of how much their low-cost insurance could cost you.

Frequently asked questions