Country Girl Posted January 18, 2009 Share Posted January 18, 2009 I totally spaced and realized that my auto and home insurance policy payments were due 2 days ago. I called and paid using the automated system today but it will take 24-48 hours for the payment to be posted. Since it is Sat. my personal agent's office is closed and so I can't talk to anyone in person. Since Monday is a holiday.... I'm thinking it may take until Tuesday for the payment to actually be posted. Has anyone ever had this happen? Do they have a grace period or will they cancel or lapse my coverage? I am sick to my stomach with worry that something will happen and we won't have coverage. Quote Link to comment Share on other sites More sharing options...
Starr Posted January 18, 2009 Share Posted January 18, 2009 I think you are okay but someone in the insurance business should notice this soon. Quote Link to comment Share on other sites More sharing options...
milovany Posted January 18, 2009 Share Posted January 18, 2009 No worries!! Yes, there's usually a grace period of more than just a couple of days. Quote Link to comment Share on other sites More sharing options...
Blessedfamily Posted January 18, 2009 Share Posted January 18, 2009 Call your actual agent on Tues Morn and let them know. They can notate your account. There is usually a grace period, but the length varies. Many insurance companies are ok with it getting there before the statement cuts. Our statement(with a major insurer) cuts about 8-10 days after the due date. No problem with them. Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted January 18, 2009 Share Posted January 18, 2009 You should be fine. There is (as others have mentioned) usually a grace period around 10 days. Quote Link to comment Share on other sites More sharing options...
G5052 Posted January 18, 2009 Share Posted January 18, 2009 I've heard of cases where they've been tightening up on this because of the economic downturn, particularly with newer customers. Six years ago my MIL was a month late because she'd been in the hospital, and my youngest BIL was able to get her insurance reinstated with a $100 penalty because they'd had the same company for some 50 years. I'm guessing that you're OK with that short a period, but I'd still call. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 18, 2009 Share Posted January 18, 2009 Depends on your state laws as to how they have to handle cancellation. In MD, they can't cancel you without sending a separate notice with a date and time of the pending cancellation, 30 days in the future. So, yes, a couple of days isn't generally an issue, but I would call the main 800 number for the company and let them know that payment has been sent. You should be able to do that at any time, rather than calling your agent's office during normal business hours. Quote Link to comment Share on other sites More sharing options...
Journey Posted January 18, 2009 Share Posted January 18, 2009 I work for a major insurance company and we allow a ten day grace period. Our company also counts the payment as in on the day it was paid. I have never heard of it being a state law as to whether or not they cancel you, so I'm not sure I agree with that one. When you pay using the automated system it always takes longer to post, that's why it's always better to try to call your agent (if you have one) directly. Just give them a call tomorrow (the should be open) and let them know what happened. Also, in my office, we always call our customers to tell them that their payments are due if they haven't paid them. I don't think all offices to that though. I think you're fine though. Quote Link to comment Share on other sites More sharing options...
Country Girl Posted January 18, 2009 Author Share Posted January 18, 2009 Thank you all for making me feel better. I think I should be okay. I did dig a little more and was able to finally find a number that got me through to a real person. The woman I talked to said it should be fine that it was only a couple of days late. Unfortunately, since I went through the automated system my payment still isn't posted. I only wish I could have figured out how to reach someone real yesterday, so I could have made sure the payment was applied. Oh, how I hate automated systems!:glare: Thanks for easing my fears! Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 18, 2009 Share Posted January 18, 2009 I have never heard of it being a state law as to whether or not they cancel you, so I'm not sure I agree with that one. Uh-huh. States regulate how insurance companies do business with their residents. From the MD Insurance Code: © (1) At least 45 days before the date of the proposed cancellation or expiration of the policy, the insurer shall cause to be sent to the insured, by certificate of mailing, a written notice of intention to cancel for a reason other than nonpayment of premium or notice of intention not to renew a policy issued in the State. (d) At least 10 days before the date an insurer proposes to cancel a policy for nonpayment of premium, the insurer shall cause to be sent to the insured, by certificate of mailing, a written notice of intention to cancel for nonpayment of premium. However, if even if the notice to cancel was sent on the day the premium was due, it would be at least 10 days before cancellation could actually happen. (This is a point that appears to be lost on our former agent, who is actually licensed here.) Also, in my office, we always call our customers to tell them that their payments are due if they haven't paid them. I don't think all offices to that though. I think you're fine though. No, they do not. But proper agents do. (again, we will use our former agent as an example of what not to do - we have not been insured by the major company he represents for three years and, in fact, have a complaint pending with the state insurance commissioner, yet we occasionally get post cards from his office "reminding" us that a premium is late. No date written, no date mailed, no information at all. :glare: He is very efficient, that one.) Quote Link to comment Share on other sites More sharing options...
Cornerstone Classical Posted January 18, 2009 Share Posted January 18, 2009 My DH and I are insurance agents in NC, for home and auto you have a 5 day grace period before a late charge is added, a 15 grace period before the policy cancels. You have 30 days to reinstate it after cancelation or you have to rewrite a whole other policy. There is NO grace period on life/ health though.... HTH Quote Link to comment Share on other sites More sharing options...
Jen in PA Posted January 18, 2009 Share Posted January 18, 2009 I think you are fine. We have forgotten the car insurance before (so hard to remember the quarterly bills!), and they mailed us a notice with a date the coverage would expire if payment wasn't received. We had to pay a late fee, but the coverage remained in effect. Quote Link to comment Share on other sites More sharing options...
Country Girl Posted January 19, 2009 Author Share Posted January 19, 2009 It is so good to have these assurances from all of you. I know it is probably silly to be worried about something like this but it really helps to have everyone's encouragement. Thanks! Quote Link to comment Share on other sites More sharing options...
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