All About Gainsco’s Grace Periods
If you miss a payment with Gainsco, you might have a grace period to make a late payment and keep your policy active, but it depends on where you live.
Written by Mary Alice Morris
Reviewed by Pat Roache
If you have Gainsco car insurance, you might have a grace period to keep your insurance policy active if you miss a payment. Most states have enacted laws requiring grace periods of 10 to 20 days, after which your policy could be canceled for non-payment.
Some states require insurance companies to notify you at least 10 days before cancellation for non-payment. Others require notification 20 days before cancellation when you miss a bill. And some states have no grace period laws at all, which means your policy could be canceled with very little notice for non-payment—and that’s a big problem!
You could face serious consequences if you’re pulled over or if you get into an accident while your coverage has lapsed. Not to mention you’ll probably end up paying higher premiums down the road.
If you’re concerned about an insurance lapse or you’ve already missed a payment with Gainsco, check out this guide from
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Does Gainsco give you a grace period after your auto insurance expires?
Like many car insurance providers, Gainsco isn’t exactly forthcoming about its grace periods. However, any grace period you’re entitled to will be indicated in your Gainsco policy documents, along with any fees or surcharges you’ll get for late payments.
While Gainsco doesn’t have a transparent grace period policy for non-customers, it’s safe to say that you’ll have some sort of grace period if you’re late on your bill. That’s because most states require insurance companies to notify customers of cancellations ahead of time. In some states, that notification must be sent as early as 30 days ahead of cancellation.
If you miss making your payment by the cancellation date, you’ll have a
lapse in coverage
, which means you’ll have no insurance protection to drive your car and your rates could go up whenever you reinstate your policy. Whatever happens with your policy, the worst thing you can do is
drive without insurance
. It puts you and others at serious financial risk and exposes you to all sorts of legal problems. You could be fined hundreds of dollars, you could lose your driver’s license, you might be sentenced to community service, and you could even end up in jail!Key Takeaway If your state requires insurance companies to implement a grace period, the exact timeline will be outlined in your Gainsco policy documents.
What are the benefits of a grace period?
While it’s not advisable to miss your insurance bill due date, sometimes life just happens. You forgot, or you had an unexpected loss of income or expense come up that prevented you from making your payment on time.
A grace period gives you a little bit of cushion to keep your policy active without suffering all the consequences of insurance cancellation. However, if you anticipate missing your car insurance payment, it’s a good idea to get ahold of your provider ahead of time. You may be able to work out an installment or deferred due date.
Gainsco paid-in-full insurance discount
If you struggle to remember to pay your bills on time or you’re worried about budgeting, you might consider paying for your entire Gainsco policy in one lump sum. If you pay your six-month premium upfront, you could qualify for Gainsco’s paid-in-full discount.
You could also sign up for autopay. Instead of paying the entire policy cost upfront, the autopay option will allow Gainsco to automatically withdraw your payment from your bank account. If you sign up for this option, you could qualify for Gainsco’s electronic funds transfer or autopay discount.
How long is a typical grace period for car insurance?
For the car insurance providers that offer grace periods, they’ll usually allow around 10 days for you to get a late payment in without losing your coverage. However, it’s important to keep in mind that this period varies by state and provider.
Consequences of a car insurance lapse
The complications that you’ll face after a car insurance lapse vary from state to state, but none of them are desirable. Here’s what might happen:
- Fines: On the first offense, you could be fined as much as $1,000. However, on the second offense, you might pay several thousand dollars!
- License suspension: In most states where insurance is required—aside fromCalifornia,Iowa, andWashington—your license could be suspended.
- Rate hikes: If your insurance is canceled due to non-payment, you may be considered ahigh-risk driver. That means your rates could go up when you get your policy reinstated or even if you switch policies.
- Vehicle repossession: If your insurance coverage lapses and you have a lien on your car, the lender could repossess it!
What to do if your Gainsco car insurance lapses
If you can’t make your premium payment in time to avoid an insurance lapse, you need to get a hold of Gainsco as soon as possible by calling them at (866) 424-6726. Speak to an agent to make a payment and get your policy reinstated. Reinstatement means you’ll be insured again, but the coverage will not extend throughout your policy lapse.
And if you aren’t able to make payment arrangements in time to get reinstated, then you’ll have to buy a whole new insurance policy. You can purchase coverage again from Gainsco, but don’t be surprised if your rates jump dramatically.
If you want to try another company—or if you just want to see if you can find a
cheaper car insurance policy
—you can shop with the Jerry
app. And if your vehicle has a lien, you’ll need to call your lender once you’ve purchased a new policy to update your insurance information.Let Jerry find your price in only 45 seconds
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How to avoid a coverage lapse
Besides budgeting, paying for your entire six-month premium in full, or signing up for automatic payments, there is one other option to help you avoid insurance lapses in the future: Download the
Jerry
app! Jerry will work to find the best rates available to you from its network of 55+ top-rated insurance providers, and they’ll handle all the hassle for you. Jerry will also automatically check for cheaper policies every six months, so you can always be sure you’re getting the best price on your coverage.
How to find the best car insurance quotes
If you’re on the rebound from an insurance lapse or you’re just hoping to avoid one altogether, then take about 45 seconds to get signed up and started with
Jerry
.Jerry will handle all the hassle and legwork that goes into car insurance comparison shopping for you. And you won’t have to deal with any salespeople, paperwork, or unwanted phone calls. The entire process is fast and easy, and Jerry is entirely free to use.
Best of all, the average Jerry user saves $800+ a year on car insurance!
“My policy of 2.5 years lapsed, and I needed to look for something cheaper.Jerryfound me a better policy with Progressive in 30 minutes––and I didn’t have to talk to anyone on the phone. Amazing!” —Jacques S.
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