When you have an accident, whether it’s your fault or not, the first thing that comes to mind is whether your insurance premium is up to date. This doesn’t only cover your injuries and damage to your vehicle, but also covers others who were affected by the accident if you caused the accident.
If you have overlooked paying the annual premium and you are insured with Allstate you may find you will have to pay a $10 penalty if you have failed to renew your car insurance on time. There is no grace period for Allstate, so you could lose your right to insurance coverage if you don’t pay up on time.
Many times in an accident it won’t be your insurer who will be responsible for paying for repair bills or medical treatment, but rather the at-fault driver’s insurance. This will mean you will need the help of a personal injury attorney to settle your claim favorably with the at-fault driver’s insurer.
What Is Allstate’s Grace Period?
Insurance companies often grant grace periods. Some car insurance’s grace period is comparatively short, often no more than 10 days after your insurance policy has reached its due date.
If you have an Allstate insurance policy you will find the grace period doesn’t actually exist at all and you are penalized by being forced to pay a $10 penalty if you have failed to renew your policy by the expiration date. You can’t be sure you will be covered in the time between the expiry date and the date you actually pay the next 12 month premium.
Grace Period for a New Car
If you are insured with Allstate, then you should have a grace period when buying a new car. Car insurance is required at all times. Car dealers won’t sell you a new car if you don’t have proof of insurance.
How Long Is the Average Grace Period?
There is no legal requirement in any state that requires a standard grace period. Some insurance policies have three day grace periods, while others may have 30 days. Added to that could be a late fee. If you pay your car insurance monthly, many insurers will allow you to use the grace period each time. This typically is not a good practice to follow as it could damage your reputation. If you wish to make any changes to the terms of your policy your insurer may be slow to respond if you have had the tendency to pay your monthly insurance payments in the grace period. You could even be refused a renewal when the policy is nearing its expiry date.
How Paying in the Grace Period May Affect an Accident Claim
Insurers are known to avoid honoring accident insurance claims. It doesn’t help if you continually pay your premium in the grace period. When you need to make a claim there may even be some confusion whether you are covered or not if you always pay in the grace period. This can become an issue if you have an accident in the grace period and you haven’t yet paid the installment for the month.
If you have forgotten what the grace period is and you have failed to pay the month’s installment within the grace period you may find if you are involved in an accident that you are no longer covered. This could have serious implications if you caused the accident and the person you hit wants to file a personal injury claim to get compensation from your insurer for vehicle damage, cost of medical treatment and other financial losses, like loss of earnings.
Grace periods are concessions offered by insurers and are really there to help you if you are short of cash one month and you need a few extra days to make some available. Often, car owners use grace periods because the payment day does not match the day they are credited with earnings. This issue can be solved by arranging a payment date with your insurer that matches the day when you have plenty of money in the bank. If you set up a direct deposit payment then you never have to worry if you have an accident as you know you are covered.
How an Accident Could Affect Your Auto Insurance
Some drivers overreact when they are involved in an accident that’s either their fault or they are partially at fault and are too scared to inform their insurance company for fear of an unaffordable hike in their insurance premiums.
Not all insurers are as will increase their premiums as that and they do take certain factors into account before raising a premium. This could depend on:
- the extent of the injuries to the driver and passengers and how severe the vehicle damage is;
- who caused the accident which could exempt the policy holder from a premium rise if he or she didn’t cause the accident;
- whether the accident took place in a no-fault state where both insurance companies share the costs of injuries and damage in an accident;
- how loyal the customer is to Allstate and how safe he or she has been in the past;
- Whether the insurer offers accident forgiveness used a reward, so there is no premium hike after a first accident.
Speak With a Personal Injury Lawyer
If you are involved in a car accident and it wasn’t your fault it’s vital you contact an experienced personal injury lawyer. An attorney can help present a favorable settlement to the at fault driver’s lawyer. To consult with a lawyer, fill out the Free Case Evaluation on this page.