A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 18, 2021

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Here's what you need to know...

  • Your car insurance must be paid up-to-date in order to avoid having your insurance canceled
  • Car insurance can be paid monthly, but you may be able to pay it ahead or in its entirety
  • Having your car insurance policy canceled, can result in your registration and license plated being suspended
  • Affordable car insurance plans can be found by using a comparison tool

Start comparing car insurance rates now by using our FREE tool above! The frequency with which you pay your car insurance is dependent on several factors, including your state’s rules and regulations for car insurance and your insurance company’s policies. In general, you must pay your insurance on-time in order to avoid a lapse in your policy.

Your Responsibilities as an Insured Motorist

In order to remain insured by your insurance company, there are certain things you must do to keep your policy up-to-date. You must contact your insurance agency and disclose any changes that could affect your policy, such as moving, a name change, a vehicle change or addition and any changes to the number of drivers on your policy, and you must pay your premium on time. If you fail to keep your policy up-to-date or do not pay your premium on time, you could suddenly find yourself without a car insurance policy. In this instance, you should make every effort to quickly find a new policy by using a comparison quote tool.

  • Keep your address up-to-date
  • Notify your insurance company of any change in drivers
  • Notify your insurance company any time you buy or sell a vehicle

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Pay Your Premium On-Time

In order to maintain valid insurance, you must pay your premium on time. How and when you pay your premium will be up to you and your insurance company. Some insurance companies will allow you to pay your insurance on a monthly basis, but this payment option may require signing up for autopay using a credit or debit card. Depending on your insurance company, you may also be able to pay every three months or every six months. Most insurance companies will allow you to pay your entire premium up front.

Payment Frequency

  • Monthly
  • Every three months
  • Every six months
  • Entire Premium

What Happen if Your Can’t Pay Your Premium?

If you miss a payment on your car insurance, your insurance company must notify you that your payment is late and give you the date by which your insurance will be canceled if you do not pay. The length of time you can until your car insurance is canceled varies from state to state and insurance company to insurance company.

Some states and insurance companies will give you a grace period, but a grace period may not be mandated by law.

To be safe, you should assume that there is no grace period and make every effort to pay your auto insurance on-time. If you are notified that your auto insurance policy has been canceled due to nonpayment, you may not be able to get a new policy with your previous insurance company. If this happens to you, use a comparison tool to quickly view multiple policies from other insurance companies.

  • Your insurance company will notify you that your premium is late
  • You will be told when your insurance will be canceled due to nonpayment
  • You must pay your premium by the cancelation date in order to avoid a lapse in your auto insurance
  • Make every effort to pay your premium on time

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What Happens if Your Let Your Auto Insurance Lapse due to Non-Payment

In order to legally drive a vehicle, you must have car insurance. If you do not have car insurance on your vehicle, the DMV will be notified, and your license plates and registration will be suspended. In order to reactivate your plates and registration, you will have to find another insurance policy and purchase it. Once you have insurance, your local DMV may require you to pay fines in order to reinstate your registration and license plate.

Reasons for Insurance Policy Cancellations

Car insurance policies are typically canceled for nonpayment, excessive late payments, not renewing your policy or excessive traffic accidents or citations. If your policy is canceled, you may not be able to reinstate your policy.

If you find yourself without an insurance policy or company, you must quickly find another insurance agency and purchase a policy in order to drive your vehicle legally.

The easiest way to find a difference insurance company and policy is by using an insurance comparison tool. This tool will allow you to input certain parameters about your vehicle and driving habits as well as the type of coverage you would prefer. Once you submit the information, the quote tool will pull up multiple policies from several insurance companies. This will allow you to quickly choose an insurance policy that meets your needs and monthly budget.

  • Use a comparison tool to find a new policy
  • Review the policies
  • Choose a policy
  • Purchase the policy
  • Print out your new policy information

While you may not have to pay your car insurance monthly, depending on your insurance company, you still have to keep your car insurance up-to-date. This means that you must pay it when it is due. If you fail to pay your car insurance by the due date, you could find yourself without car insurance. If your car insurance is canceled, it is up to you to find a new policy with a new insurance carrier. The most efficient way to find and purchase a new policy is by using a comparison tool. Start comparing car insurance rates now by entering your zip code in our FREE tool below!