diff --git a/src/libs/PolicyUtils.ts b/src/libs/PolicyUtils.ts
index 39e6c8932aad..7717513d3f59 100644
--- a/src/libs/PolicyUtils.ts
+++ b/src/libs/PolicyUtils.ts
@@ -240,7 +240,7 @@ function isPaidGroupPolicy(policy: OnyxEntry<Policy> | EmptyObject): boolean {
  * Note: Free policies have "instant" submit always enabled.
  */
 function isInstantSubmitEnabled(policy: OnyxEntry<Policy> | EmptyObject): boolean {
-    return policy?.autoReportingFrequency === CONST.POLICY.AUTO_REPORTING_FREQUENCIES.INSTANT || policy?.type === CONST.POLICY.TYPE.FREE;
+    return policy?.type === CONST.POLICY.TYPE.FREE || (policy?.autoReporting === true && policy?.autoReportingFrequency === CONST.POLICY.AUTO_REPORTING_FREQUENCIES.INSTANT);
 }
 
 /**
diff --git a/tests/unit/ReportUtilsTest.js b/tests/unit/ReportUtilsTest.js
index 9fbea1df862e..adfa35a57ad8 100644
--- a/tests/unit/ReportUtilsTest.js
+++ b/tests/unit/ReportUtilsTest.js
@@ -552,6 +552,7 @@ describe('ReportUtils', () => {
                 const paidPolicy = {
                     id: 'ef72dfeb',
                     type: CONST.POLICY.TYPE.TEAM,
+                    autoReporting: true,
                     autoReportingFrequency: CONST.POLICY.AUTO_REPORTING_FREQUENCIES.INSTANT,
                 };
                 Promise.all([