When your auto insurance lapses it can not only lead to higher insurance rates, but also fines and lack of protection in the event of an accident.
In this post, we'll explain what constitutes a lapse in your auto insurance, what the consequences can be, what to do if your insurance has already expired, and how you can avoid a lapse in the first place.
What happens if my insurance expires?
If your car insurance lapses, you'll almost certainly have to pay higher insurance premiums later on. While fines vary by company, and some insurers do not penalize customers for brief failures, many auto insurance companies consider faulty customers to be more risky than non-fault customers.
Drivers whose coverage lapses for 30 days or less see their auto insurance rates increase by an average of 9%. For drivers whose coverage expires between 30 and 60 days, that jumps to an average increase of 13%. depending on your state, that number can go up to 48%.
What exactly is a span?
A lapse in auto insurance coverage refers to any period in which you are a registered car owner but do not have auto insurance.
There is no universal reason for a gap in coverage. Maybe your policy just ran out. Perhaps you missed a payment and your policy was canceled as a result. Your coverage could lapse because you were deployed, no longer drive, or for a myriad of other reasons.
How do I get insurance?
Once you realize your car insurance has expired, you can start looking for new car insurance. In this way, you will be able to know which ones there are to decide which one is best for you in order to once again have coverage that will protect you from any situation related to accidents and more.
Follow the steps below to find new car insurance after a lapse.
put it in the park
As soon as you realize your coverage has expired, do everything possible to avoid driving your vehicle. The last thing you want is to get a ticket or be in an accident while driving without insurance. Ask a friend for a ride, take the bus or use a ride-sharing app, but be sure to stay off the road.
call your company
Hopefully your situation is as simple as forgetting to pay your bill. If this is the case, and your coverage has only lapsed for a few days, your insurance company may be willing to reduce it a bit.
look for discounts
Whether you stay with your old insurer or find a new one, don't be afraid to ask for discounts. Your company can offer discounts for anything from choosing paperless billing to passing a defensive driving course.
keep registering
A lapse in auto insurance coverage won't follow you forever. If you've gone several months without incident, check back with your insurer and ask them to reassess your rates.
How can I avoid expiration?
While the steps above are useful if your insurance has already expired, it's best to avoid it in the first place. Even if you're the forgetful type, the tips below can help set you up for success.
Take advantage of grace periods
An auto insurance grace period refers to the period of time you can postpone paying your premium without having a lapse in coverage. Different companies have different grace periods, so be sure to ask your insurer what their default policy is.
Sign up to receive reminders
These days, email and text messages are ubiquitous, with most of us checking ours multiple times a day. So what better way to stay on top of your payments than to sign up for your insurer's email or text message payment reminders? They're a convenient way to stay on track, and you get the satisfaction of removing them once you're done.
Consider your budget
Always be realistic about your budget when buying car insurance. Getting the type of coverage within your budget means you'll be less likely to miss payments, which lowers the likelihood of insurance lapses.
