That depends. Does your car insurance provider offer a grace period? If it does, as long as you pay the premiums due in full before the end of the grace period, you should be fine.

Grace periods can vary in length anywhere from a single day to 30 days. If you’re in an accident within the grace period, you still should be covered as long as you pay the premiums due before the grace period expires. Of course, you’ll also have to pay your deductible, too.

Now, if your auto insurer doesn’t allow a grace period, or you fail to make your payment within the grace period, everything changes.

The Ramifications of an Expired Insurance Policy

For starters, your auto insurance policy gets cancelled. You can contact your insurer and try to get it reinstated. Depending on the provider, as well as your claim and payment history, you may be successful. Keep in mind you may need to re-apply, and if so your premiums may go up and you may face additional conditions.

If your insurer won’t take you back, you’ll have to shop elsewhere – and the situation may become bleaker. Some insurance companies may view you as a poor risk, and refuse to take you on as a customer. Others may saddle you with hefty premiums. Others may make you pay for a full year of insurance in advance.

You may also be classified as a “high-risk” individual and be forced to buy from a non-standard carrier, which means sky-high premiums. But, some providers may welcome you without any nasty surprises or conditions. In really depends on your circumstances and the insurance company.

Depending on your state, you may have to notify the DMV that you have new insurance coverage.

Car Insurance Renewal: Do It On Time

Obviously, the takeaway here is handle the renew insurance task before your insurance renewal date. If you can't do that, just be prepared to deal with the consequences of your action, whether they are minimal or severe.

Of course, don’t get caught driving without insurance; this will only compound your problems.