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What Happens if Your Car Insurance Lapses?

Preventing a Lapse in Your Auto Insurance

Car insurance is required by law in almost every state, but beyond that, it is essential to have coverage if you are going to be on the road. No matter how safe of a driver you are, you cannot control all of the factors around you and things do happen. Auto insurance is a smart and practical way to protect yourself, your car, and other motorists in the event that things do go wrong. 

What Causes a Lapse in Insurance?

A lapse in your auto insurance is certainly preventable, but regardless still can happen if you aren’t paying attention. It is considered an official lapse if you are not covered for 30 or more days by an insurance policy. Some reasons that an auto insurance policy could lapse include: 

  • Failure to pay your insurance bill
  • An insurance company cancels your policy due to accidents or tickets
  • A policy ended and you did not renew it in time
  • Failure to respond to an insurance company’s underwriting request

If you find yourself in any of these situations it is critical to contact your insurance agent immediately and resolve the problem. If caught within the 30-day window and corrected your policy will not lapse and you will not be considered a high-risk driver due to a lapsed policy. 

What Will Occur If Your Policy Lapses?

Once you are uninsured for 30 days or more, you are then considered a high-risk driver. If this happens, there are several things that can occur: 

  • You will have to pay a much higher premium to get a new auto insurance policy
  • If leasing or financing your vehicle you will likely be in breach of your agreement
  • Your car can be repossessed
  • If you are pulled over while uninsured you will be fined
  • If you are involved in an accident while uninsured you will be fully responsible for all damaged and face potential legal action

What To Do If Your Policy Lapses

Above all else be sure to not drive your vehicle until you are fully insured again. If you become aware that your auto insurance policy has lapsed it is important to contact your insurance agent immediately. If the lapse is due to your failure to pay the premium, you can possibly qualify for a higher deductible policy that would warrant a lower premium so that you can make the necessary payments to become insured again. However, a lapse on your history will make future policies more expensive because you are now considered high-risk so keep this in mind. 

Since most states require auto insurance by law, it is likely that your previous insurance provider will report you to your state’s DMV and you will also have to pay a fine for letting your policy lapse. Be sure to pay any fines incurred as soon as possible to ensure that your state does not revoke your driver’s license or car registration. 

Let Nickerson Insurance Quote You Today

Every driver needs car insurance because taking the liability of driving uninsured is not only against the law, it can have an extensive negative impact on your life should you take the risk and lose. Give us a call at Nickerson Insurance and a trustworthy insurance agent will walk you through the process and help you find the most cost-effective policy for your budget.

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