Definition
Policy Period refers to the specific window of time during which an auto insurance policy is active and provides coverage. The most common policy period in Texas is six months, though some carriers also offer twelve-month terms, and certain non-standard carriers use shorter one-month or three-month terms. The policy period is listed on the declarations page with a specific start date and end date, and it defines when rating changes such as premium increases take effect. Coverage begins the moment the policy binds on the start date and ends at 12:01 AM on the end date. A lapse occurs if the policy is not renewed or replaced before the end date. Rates can only be changed by the carrier at renewal — not mid-term — unless a material change such as adding a vehicle or a driver occurs. Understanding the policy period is critical for SR-22 drivers because any gap can trigger an SR-26 filing.
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