Insurance Term of the Day: (Auto) Policy Period
Insurance Term of the Day: (Auto) Policy Period
Our calendars are flooded with important dates that we must remember. Birthdays, doctors appointments, kidsโ sports games, the list is seemingly never ending. Itโs understandable that one may lose track and forget an important date-unless itโs an anniversary. Good luck with that.
Aside from your anniversary, itโs also crucial to remember another date: the day your insurance policy expires. Insurance isnโt always the first thing on your mind. However, you should always bare in mind the policy period of your insurance contract.
What is a policy period? Every policy has a policy period that is clearly stated on your insurance declarations page. The policy period starts on the day the policy is issued, which can be any day of the month. A policy period is important because it gives the dates that the policy is in force. Any event that occurs before or after the policy period would not be covered by the insurance.
The length of a policy period is determined by your specific insurance company. There are a few options that most insurance companies offer: a six-month policy, a year-long policy, and, in special circumstances, a month to month policy. Starting from the effective date, you will have coverage for the following six months, so long as the bill is paid on time each month. If your bill is not paid, the policy will be cancelled, leaving you uninsured.
Another reason why policy periods are significant is because often, the policy period indicates the due date of your payments. Missing or forgetting this date could mean you miss a payment.
Where is the policy period located? You can typically find your policy period on your declarations page.
When looking at your policy period dates, donโt mistake the โpolicy dateโ with the โeffective date.โ The policy date is mentioned within the contract of your policy. For example, the policy date is used when discussing grace period expiration dates, etc. However, the โeffective dateโ is the date that the insurance company became legally liable for you and your property.
What happens at renewal? When your policy term ends, you have the choice to renew your policy or shop around. If your insurance company chooses to non-renew you, you must find coverage elsewhere. Otherwise, youโre risking a lapse in coverage and an increase in rates.
Have you ever noticed that everything happens at the most peculiar time? Donโt be caught off guard without insurance by missing your renewal date.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Blogs
Road Trip Through History: The Unexpected Story of the Interstate Highway System
From nuclear war to family road trips, the Interstate Highway System’s history is more surprising than you think
Independent Spirit, Independent Insurance: Why Your Business Needs an Independent Agent
Ditch the Captive Agent! Why Independent Insurance Agents are Your Business’s Best Superhero
Beyond the Funeral: 9 Reasons Why You Need More Life Insurance Than You Think
Life Insurance: Not Just for Buryin’! Unexpected Costs You Never Knew Were Covered
New Car, New Coverage? Navigating the Wild World of Auto Insurance
New Car? Don’t Get Stuck on the Side of the Road with Bad Insurance!
Renters Insurance: Your Secret Weapon Against Disaster (and Burglars!)
Beyond Broken Leases: Why Renters Insurance is Your Best Friend (and How to Get a Great Deal)
Flappers, Flights & Fizzy Fridays: The Roaring Twenties You Never Knew
Dive into the 1920s beyond the speakeasies! Explore the decade’s social shifts, technological marvels, and surprising connections to modern times.
Bundle Up and Save! The Ins and Outs of Business Insurance
Unsure about business insurance? Don’t be! Learn how bundling different coverages protects your company and puts money back in your pocket.
Life Insurance Myths Busted: Unveiling the Simple Truths Behind Financial Security
Considering life insurance but confused by the myths? We clear the air on common misconceptions and show you how to get simple, affordable coverage.
Buckle Up for Savings: How Car Safety Ratings Save You Money
Crash Test Your Cash Flow: How Car Safety Ratings Impact Insurance Rates
Pool Paradise or Premium Pain? The Splashing Truth About Pool Insurance
Dive into Savings: How Pools Affect Homeowners Insurance (and How to Stay Afloat)