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What actions are typically taken by a lender if auto insurance is cancelled or expired and how long is the grace period?

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Wiki User
2015-07-17 17:33:57
2015-07-17 17:33:57

Most finance/lease contracts allow the lender to either take the car back or purchase insurance and then charge the customer for it on their loan. The insurance the lender would buy is very expensive.

As far as I know, there is not a grace period.

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You'd need to be more specific. An expired plate ticket where I live is about $80; if you're driving on expired plates and your insurance has been cancelled, I think that's an automatic impound, which means the fine from the ticket is likely to be the least of your worries.

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You have insurance and drivers license is expired can you be ticketed

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A lapse in your auto insurance is a time period for which you had or have no coverage. Either your policy expired and was not renewed on schedule meaning you missed your renewal payment or you missed a monthly payment and the policy was cancelled.

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Insurance Grace PeriodNo, any grace period would have passed before the policy went to cancelled status. Once the policy is cancelled that means any grace period that may have been afforded will have expired. If you were still within any regulatory grace period then your policy will not be in cancelled status, it would be in cancellation pending status.They are not legally obligated, most carriers do give you a time to re-instate however


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