What if I have a lapse in auto insurance?

Insurance companies view drivers who keep consistent auto insurance coverage as less of a risk than those who have even short lapses in coverage. If your insurance company sees you as more of a risk, it will be evident in your car insurance premium. More risk comes with higher rates.

For the most part short lapses in car insurance are common. If you need to reinstate your policy or buy a new one, it should be fairly easy. Keep in mind, carrying auto liability insurance is the law so keeping up with your car insurance is vitally important.

What is a Lapse In Car Insurance?

A lapse in your auto insurance policy, is when you have a registered vehicle but do not carry auto insurance on said vehicle. This can happen due to a multitude of reasons, you’re out of the country, going to school and don’t drive, no longer drive, have been deployed, you missed a payment, your policy ran out, the list goes on.

The most common reason for a lapse in coverage is when the policy owner misses a payment or just forgot to renew the policy. At that point the insurance company will go ahead and cancel the policy. When your auto insurance policy is no longer active, your insurance company will notify the DMV that you are no longer insured. Depending on your location this sort of lapse in coverage can leave you open to a ton of fines, suspension of drivers license, penalties and of course open to huge financial loss in case of an accident.

If you’re being deployed or have decided to study abroad there are potentially options to suspend your policy. This carries from insurance company to insurance company. The best way to find this information out is to speak to an agent. [click here to call an agent now]

If you have chose to study abroad, you will need to request an affidavit from your local DMV office. The affidavit should state you will not be using the vehicle.

Please keep in mind not every auto insurance company will suspend coverage. Very often if your vehicle is on a lease, you potentially will not have the option to suspend your coverage.

What to do if you have an insurance lapse?

1) First call your car insurance company. If it hasn’t been that long, there is still a good chance your policy is intact. Call the insurance company right away and find out if your policy has been cancelled yet.

2) Find out whether or not your auto insurance policy can be reinstated. If you are able to reinstate your policy it will mean you have maintained constant coverage without a lapse. More than likely you will have to pay any past due balances, but this will not be considered a lapse.

3) If you find out you can not reinstate your auto insurance policy, you’re going to need to buy a new one. If you plan on driving, you need car insurance. Some auto insurance companies can start your coverage immediately. If you need to purchase a policy and need coverage right away, call one of our agents. They can give you a fast easy quote and get you covered today. [click here to call an agent now]