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Texas insurance glossary

Grace period

A grace period is time after a due date in which a payment can still be made without the policy ending, and a Texas auto policy often has none at all.

Sources checked

The dangerous assumption is that one exists. Life and health policies commonly carry a stated grace period; a personal auto policy in Texas frequently does not, and coverage can end on the date the notice says it ends.

What follows is a lapse, and a lapse is not only an insurance problem. It is visible through TexasSure, it is what a conviction for driving without coverage is built on, and repeated lapses are what put an SR-22 in the picture.

Reinstating after a missed payment is at the insurer’s discretion, and it is not the same as never having missed it.

Sources: TDI — consumer bill of rights for personal automobile insurance (CB005); TDI — home insurance glossary; TDI — car insurance tips. Verified .

A definition, not legal advice and not a quote. Rules and figures change; confirm your own situation against the source named above, or with us, before you act on it. Last checked .

See also

  • Lapse A lapse is any period with no auto policy in force, whether the policy was cancelled, not renewed, or simply never paid.
  • Cancellation A cancellation is the termination of a policy during its term, by the insurer or by the policyholder, rather than at the end of the term.
  • Premium A premium is the amount charged for an insurance policy for a stated term, calculated from a carrier’s rates as filed with the Texas Department of Insurance.
  • Non-renewal A non-renewal is the insurer declining to continue a policy at the end of its term, as distinct from a mid-term cancellation or a declination that never issued at all.
  • Reinstatement fee A reinstatement fee is the amount the Texas Department of Public Safety charges before it will reissue a driver license that has been suspended or revoked.

Where this is handled

Knowing what a coverage is called is not the same as knowing what is on your policy. One independent agency can read your declarations page with you and compare the markets that will write your record.

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