What Will Happen If Your Auto Insurance Policy Lapse?

You won’t have insurance for some period if you have a lapse in coverage. Driving with lapsed car insurance is never a good idea, and it can lead to tickets, fines, jail, or suspended license. Therefore, it’s better to keep your coverage or have the state minimum than to drive without coverage.

What Does Car Insurance Lapse Mean?

It is when a car does not have the state minimum coverage. A lapse in your insurance coverage can be due to cancellation from not renewing your policy when it expire, not paying your premiums, or getting dropped after too many tickets. A lapse in coverage means you need to reinstate your previous policy or find a new one.

What Are The Consequences Of An Insurance Lapse?

If you had a car accident while you’re not insured, you’d pay for all the expenses involved. In addition, if you’re caught driving with lapsed coverage, you could be fined, have your car impounded, or have your driver’s license suspended. Jail time is also possible. Driving with lapsed coverage will negatively impact your driving record and raise your insurance rates when you get coverage again.

How To Avoid A Coverage Lapse?

Here are some ways to avoid an insurance lapse:

  • Pay for your car insurance on time.
  • Get a premium rate you can maintain.
  • Have at least your state’s minimum coverage.

What To Do If Your Auto Insurance Lapse

Contact your insurer if your car insurance lapses. If you know you cannot pay the premium, your insurance company may assist you. Options such as increasing your deductible or discounts may lower your premium so that you can make the payment before letting your car insurance lapse.

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