Each state has rules governing when an insurance company may drop your policy. Furthermore, in states like Pennsylvania, payment must be received by the due date. Dropping the payment in the mail by the due date isn't good enough. Most auto insurers value your business and won't drop you if you're a few days late. Some companies, however, may seize that opportunity to kick you off their rolls if you're habitually late with payments or if they decide that you're a risk they no longer wish to insure.
Many drivers mistakenly believe that there is a grace period for paying auto insurance premiums.
If you're late in paying your auto policy premium, you're at the mercy of your insurance company. State insurance laws will, however, prescribe the number of days' notice that you're entitled to before the cancellation takes effect. But that's little consolation when you're on the verge of losing insurance. If you've gotten away with paying your auto insurance a few days late in the past, don't count on your auto insurer being understanding forever. In many cases, the person canceled will complain to the state insurance department, arguing that the insurer always accepted late payments in the past.