All About AAA’s Grace Periods
Except in states where grace periods are mandated by law, AAA does not offer grace periods for missed car insurance payments.
Written by Jason Tushinski
Reviewed by Pat Roache
AAA does not offer grace periods for missed payments unless you live in a state where grace periods are mandated by law. If grace periods are mandatory, they typically run from between one to 30 days depending on the state.
A lapse in insurance payments is a headache you do not want, but sometimes life just happens—checks get lost under stacks of paperwork, your expenses unexpectedly go up, or making a payment slips your mind. Some insurers will let it slide, giving you a window of time to make your payment, but some—like AAA—will only do this if you live in a state where grace periods are mandatory.
One missed payment could mean a canceled policy—and you could face legal penalties if you’re caught driving without insurance as well as months or even years of higher premiums. That’s why
Jerry
, the car insurance
super app, has put together this guide to AAA’s lack of a grace period for auto insurance payments—plus a tip to find the best AAA insurance quotes
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Does AAA give you a grace period after your auto insurance expires?
No, AAA does not offer a grace period for missed or late payments, unless a grace period is mandated by state law.
If you live in a state where grace periods are mandated, you’ll be able to pay your missed or late payment within the grace period set out by your state. AAA will send you a notice in the mail with the end date of your grace period. If you don’t make your payment by this date, AAA will cancel your insurance policy.
Do everything possible to make your payment before this period ends. You may incur a late fee for paying your premium within the grace period window, but that late fee will pale in comparison to having your insurance canceled and being saddled with high premiums for a long time afterward.
You can double-check any locally mandated grace period time frames with your AAA regional club. Typical grace periods offered by insurers usually run between one and 30 days.
AAA does not offer a grace period in states where grace periods are not mandated. You risk AAA canceling your policy if you don’t make your payment on time. The penalties for
driving without car insurance
vary from state to state but are generally severe, including significant fines and driver’s license suspensions.What are the benefits of a grace period?
A grace period is a great way to ensure you don’t miss your insurance payment and end up with a lapse in coverage. Just one missed payment can significantly impact your premium to the tune of 8%, while longer lapses will see you pay much higher premiums than average.
AAA continuous insurance discount
AAA’s continuous insurance discount is known as a Loyalty Member Discount—after a year of continuous coverage with AAA, you’ll receive a 5% discount on your policy, with discounts available up to 20% depending on the AAA club you belong to. If your coverage lapses, your AAA member club may cancel your discount, or you may not be eligible for it in the future.
How long is a typical grace period for car insurance?
Not every insurer offers a grace period, but the average is usually around 10 days for those that do, with the minimum being one day and the maximum being 30 days. Remember though, AAA only offers a grace period in states where it is mandated to do so, so check with your regional AAA club to confirm whether you have an auto insurance payment grace period or not.
Consequences of a car insurance lapse
Letting your car insurance lapse can mean a host of negative consequences. That said, the consequences you may face for a lapse in coverage will depend on where you live, whether you have financed your vehicle or not, and how quickly you can get car insurance again. Here are common consequences for coverage lapses:
- Fines: Most states slap significant fines on drivers caught driving without insurance. A first offense can typically mean a fine of between $500 to $1,000. In some states, subsequent offenses can mean a fine of up to $5,000.
- License suspension: If you drive to make a living, you want to ensure you pay your insurance premium on time every month, as a lapse in coverage could mean your driver’s license will be suspended. License suspension for driving without insurance is possible in every state where insurance is required exceptCalifornia,Iowa, andWashington.
- Higher car insurance rates: If you’re caught driving without insurance, you’ll likely pay steeper prices the next time you shop forcar insurance quotes online, as you’ll be labeled “high-risk” by insurers.
- Vehicle repossession: If your insurance coverage lapses, your lender could have your vehicle repossessed.
What to do if your AAA car insurance lapses
If you can’t make your insurance payment, or if your state-mandated grace period has expired, call your regional AAA club immediately, and try to speak with an agent in hopes of getting your policy reinstated.
While you may be able to get your policy reinstated after speaking with an agent and making your payment, this is not guaranteed. If that’s the case, you’ll have to apply for a new policy. You can buy a new policy from AAA or you can use
Jerry
to find the best insurer based on your driver history, including your coverage lapse.Once you’ve secured auto insurance, the next thing to do is to call your state DMV and update your insurance information. Ensure your new policy meets your state’s minimum mandatory insurance requirements. For example—
New York State
requires all drivers to carry personal injury protection (PIP)
along with basic liability coverage
.How to avoid a coverage lapse
Whether it's putting a reminder in your calendar about your premium payment due date or setting up autopay in your AAA MyPolicy account, do everything you can to avoid a missed or late payment. Some AAA member clubs might reward you with a discount for automating your payment. Of course, the biggest reward to setting up autopay is that you’ll never miss a payment!
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AAA insurance grace period for new cars
Depending on the state, you could have up to 30 days to add your new car to your existing AAA insurance policy, but this grace period does not apply to new AAA customers. During this grace period, your new car will be covered under your existing insurance policy.
If you’re an existing AAA customer, you can add a new car to your current policy by calling your regional AAA club or doing so online. Your insurance rate will go up when you add a second vehicle, but by how much depends on the type of vehicle you add. That said, you may be eligible for a multi-vehicle discount when you add a second car to an existing AAA policy.
If you’re a new AAA customer, be sure to have your policy set up for the day you buy the vehicle, as you won’t be eligible for a AAA grace period.
How to find the best AAA car insurance quotes
If you carry AAA insurance because that’s where you found the best rate, that’s great. Or, perhaps you’ve been a AAA customer since you started driving—also great.
That said, it doesn’t hurt to use
Jerry
to shop around for the best rate possible, especially if you're having trouble making your insurance payments on time. Jerry partners with more than 55 insurance carriers and the web’s most trustworthy insurance shopping super app
compares rates in real time for you. If you see a better rate, Jerry will sign you up and help you cancel your AAA insurance
. Best of all, we’ll make sure you don’t have a coverage lapse!“I signed up for a new policy withJerry’shelp. I ended up saving $236 a month after my switch. Thank you, Jerry!” —Adelaide C.
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