Auto Insurance Claims: Insurance Coverage Lapse, credit card balance, grace periods

Question
A friend was in a minor car accident (his fault).  After filing a claim through the company's 800 number, he was informed that his policy had lapsed (due to late payment).  Payment was late by no more than one week.  All other premiums had been paid in a timely manner for approximately 5 years.  After speaking with his agent directly, the response was that there was nothing he could do and that they could not cover the repairs.

This just doesn't seem right.  Isn't there a grace period or application of late fees before a policy is just dropped?  Is there any other recourse my friend can take?

Thank you.  I appreciate any insight you may have.

Answer
Nope.

We're talking about an insurance policy.  He pays and they cover.  He quits paying and they quit covering.  There are no grace periods.  

Yes, other businesses do extend grace periods or apply late fees.  But think about it.  What is a stake?  A $200 power bill?  A $500 credit card balance?  What they are really extending is just a little more time and credit.

By extending a policy past the payment due date, the insurance company is putting the entire policy limits at stake.
Big difference.

Insurance is always paid for up front.  You may get a binder on the day that you put out the down payment, but the second that you are not paying for the coverage the next month, the coverage no longer exists.

There is something that your friend is not telling you.  Because insurance is always paid for up front, being a week late will not leave you without coverage.  The reason is that the due date is much more than a week before the previous period of coverage that was paid for has been reached.  The systems automatically generate a warning that the payment hasn't been recieved at least 10 days "before" the coverage actually expires.  To get to the point of no coverage, the payment usually has to be several weeks late.