Typical grace periods are seven days for auto insurance and 31 days for life insurance, but can vary among companies and states. Late payments can result in your coverage lapsing or terminating. In some cases a policy can be reinstated by catching up with payments, but insurance companies are generally not obligated to reinstate coverage.
Efforts to ease the financial strain on policyholders are in the form of time extensions, not the forgiveness of the payments. If you use a longer grace period or are able to “skip” insurance payments, your total bill will still accumulate.
Auto and Homeowners Insurance Companies Offering Payment Help
Allstate says that customers can request a special payment plan that allows them to skip two premium payments without a penalty. This applies to auto, property and powersports insurance payments.
American Family says customers with financial difficulties should contact them to discuss options.
Amica says that through June 2, 2020, they will not cancel policies due to unpaid premiums and won’t charge late fees. Amica says customers should call them if they need to talk about payment alternatives.
Auto-Owners Insurance customers can call the company to discuss options such as changing their due date, changing their payment plan or getting a payment extension.
Erie Insurance says it can offer customers options such as delayed payment dates, adjusting installments, changing pay plans and waiving penalties and fees.
Farmers says customers can take extra time to pay and won’t have their policies canceled, through May 1, 2020. Customers will have until at least May 1 to make a mid-term payment, if one is due. Any unpaid balance will carry over to the next billing statement with no late fee or other penalty.
Geico will not cancel coverage due to nonpayment or policy expiration through April 30, 2020. When normal billing resumes, customers can ask about special payments plans.
The Hanover has put a 60-day hold on all cancellations due to non-payment for all customers, unless a longer period is required by a specific state. Late fees will be waived.
Liberty Mutual is offering extended payment deadlines and waiving fees for customers who are impacted by the coronavirus.
Mercury Insurance says customers should call the company if they’re facing financial difficulties.
Nationwide says that it is “currently reviewing hardship requests based on individual circumstances” in a statement on its website.
NJM Insurance says it won’t cancel policies due to non-payment through April 30, 2020. NJM is offering flexibility to customers, including payment plans.
Progressive is waiving late fees and will not cancel or non-renew policies due to non-payment through May 15, 2020. The company says they’re also providing payment leniency to customers who call and ask for it.
State Farm, the nation’s largest auto and home insurer, says that customers with financial difficulties should contact their State Farm agents to discuss payment options.
Travelers says it will not cancel or non-renew of coverage due to nonpayment through May 15, 2020. Travelers will not charge interest, late fees or penalties during this time.
USAA will not charge late fees or cancel auto or property insurance for members who need more time to pay as a result of COVID-19, through June 17, 2020. This change is automatic and members do not need to contact USAA for it. USAA also offers special payment arrangements on auto, property, life and health insurance.
States Mandating Insurance Payment Extensions and Other Relief
Many states have asked or ordered auto and homeowners insurance companies to provide flexibility to customers who are financially affected by COVID-19.
Alabama has asked insurance companies to relax due dates for premium payments, extend grace periods, waive late fees and penalties, and allow premium payment plans to avoid lapses in coverage. Insurers in Alabama should only consider cancellation or non-renewal of policies after exhausting all efforts to work with policyholders.
Alaska prohibits insurance companies from canceling policies due to nonpayment.
Arkansas has called for a 60-day moratorium on the cancellation or non-renewal of insurance policies due nonpayment of premium for Arkansans who test positive for COVID-19. Insurers can request evidence of the diagnosis.
California has made a sweeping order that all insurance companies must offer at least 60-day grace periods for all insurance payments to Californians, including auto, homeowners, health and life insurance.
Colorado has directed insurance companies to make reasonable accommodations to extend premium grace periods, waive late fees, provide a continuation of coverage for any expiring policy, defer non-renewals and cease cancellations for nonpayment.
Connecticut requests that all insurance companies provide their policyholders with at least a 60-day grace period to pay insurance premiums.
Delaware requests that all insurance companies in the state suspend cancellations and nonrenewals due to nonpayment of premium.
Florida has encouraged insurers to be flexible with premium payments in order to avoid lapses in coverage.
Georgia directs insurers to refrain from canceling any policy for nonpayment of premium.
Hawaii has encouraged insurers to work with policyholders and refrain from canceling or non-renewing policies for nonpayment and to grant a grace period for premium payments. The state also encouraged insurers to work with policyholders on payment plans, and waive late fees and penalties.
Indiana asked all insurance companies to place a moratorium on policy cancellations and non-renewals. Insurers are encouraged to allow a 60-day grace period for any premium payment due from March 19, 2020 to May 18, 2020.
Maine has asked insurance companies to make all reasonable accommodations for late payments and “other problems that are beyond the consumer’s control.”
Maryland encouraged insurance companies to make reasonable accommodations to avoid cancellation for nonpayment of premium, such as suspension of premiums due, extension of billing due dates and premium grace periods, and waiver of installment and late fees.
Massachusetts expects insurers to take all necessary steps to avoid cancellation of policies, including flexibility in collecting premiums, such as extending grace periods and waiving late fees, non-sufficient funds fees, installment fees and penalties.
Mississippi has issued a 60-day moratorium on the cancellation and non-renewal of insurance policies for nonpayment of premium.
Missouri encourages all insurers to extend payment grace periods to avoid cancellation or non-renewal of policies.
Montana has encouraged insurers to be flexible with policyholders, including longer payment grace periods, and waiving late fees and other types of fees.
Nevada encourages insurers to take actions such as extended grace periods, flexibility with due dates for premiums, waiving late fees and penalties, and setting up payment plans. Nevada asks insurers to only cancel or non-renew policyholders after all other efforts have been exhausted.
New Jersey encourages all insurance companies to relax payment deadlines, extend grace periods, waive late fees and offer payment plans for insurance in order to avoid canceling or non-renewing policies.
New York wants all insurers to offer extended payment deadlines, waive late fees and work with policyholders to avoid cancellation of policies.
North Carolina urges insurers to relax payment deadlines, extend grace periods, waive late fees and penalties, and offer payment plans. Insurers should consider canceling or non-renewing a policy only after efforts to work with the policyholder have been exhausted. The state also ordered insurers to defer premium payments for 30 days when a customer requests it.
North Dakota urges all insurers to provide flexibility and possible relief to customers whose finances are impacted by the coronavirus. This includes extending grace periods and payment deadlines, waiving late fees, developing payment plans, and allowing additional time before policies are canceled or non-renewed. People with claims should also be given extra time to submit “proof of loss.”
Ohio says auto, home, life and long-term care insurers must provide grace periods of at least 60 days to customers who are financially affected by COVID-19. Insurers must also waive late fees and reinstatement fees.
Oregon ordered all insurers to extend grace periods for payments, postpone policy cancellations and nonrenewals, and extend the deadlines for reporting claims.
Pennsylvania says insurance companies should provide extended grace periods, allow payment plans and waive late fees for those affected by COVID-19. Insurers should cancel or non-renew policies only when all other efforts to work with policyholders have been exhausted.
Rhode Island asks all insurers to give flexibility to customers, including extended grace periods for payments, payment plans, and waiving late fees, in order to delay or avoid the cancellation of insurance.
South Carolina advises all insurers to offer extended grace periods and extra time before a policy is canceled or nonrenewed. The state also wants insurers to extend deadlines for “proof of loss” for claims.
Tennessee wants all insurance companies in the state to provide as much flexibility as possible to customers, including delaying premium payments and waiving late fees. Insurers should try to delay any cancellation of coverage due to nonpayment.
Texas wants all insurance companies to work with policyholders who have financial hardships due to COVID-19. This includes grace periods for payments, temporary suspension of premium payments and payment plans.
Virginia encourages insurers to provide extended grace periods, waive late fees and provide payment plans. Insurers should cancel or non-renew policies only when they’ve exhausted all reasonable efforts to work with the policyholder.
Washington ordered auto and home insurers to give grace periods, waive late fees and not cancel policies due to nonpayment, through May 9, 2020.
Wisconsin encourages all insurers in the state to be flexible for policyholders who have economic hardship due to COVID-19. This includes deferred premium payments and premium holidays without cancellation.