Every driver needs to have insurance. It\u2019s required by law in all states except New Hampshire, and even there it\u2019s still strongly recommended. If you finance or lease your car, then the finance company or lessor will also require insurance. Nonetheless, there are a number of reasons a driver might let his or her insurance lapse \u2013 some intentional and some not. So what are the consequences of letting your car insurance lapse?<\/p>\n\n\n\n
When your car insurance no longer meets the minimum required coverage in your state, you are said to have had a lapse in car insurance coverage. While this is generally a problem, there are legitimate reasons not<\/em> to have car insurance:<\/p>\n\n\n\n In short, if you plan to drive at all<\/em>, you need to maintain insurance coverage.<\/p>\n\n\n\n While these don\u2019t justify going without coverage, the most common reasons a lapse happens include:<\/p>\n\n\n\n So your car insurance has lapsed; now what happens? If car insurance lapses, most insurance companies fortunately have a car insurance lapse grace period<\/em> during which you can reinstate your coverage; by doing so, you will maintain a consistent record of coverage despite the brief lapse.<\/p>\n\n\n\n If you are unable to reinstate your policy after the lapse, coverage is no longer in force and the DMV will be notified by your insurance company. This can lead to penalties, which depending on your state could include:<\/p>\n\n\n\n If you\u2019re caught driving<\/em> without insurance, it gets worse. In addition to the above, you could serve time in jail, be required to do community service, and your vehicle can be impounded in some states. If your vehicle is leased or financed, it could even be repossessed. You will almost certainly see a premium increase when you do apply for insurance.<\/p>\n\n\n\n On top of all that, if you are found at-fault in an accident without insurance, you will be required to pay for damages out-of-pocket, and can be sued. And to cap it all off, if you\u2019re in an accident that\u2019s not<\/em> your fault, the amount you can recoup for damages could be limited, depending on your state.<\/p>\n\n\n\n If you ever do have a lapse in coverage, it is important to rectify this immediately. Your best option is to reinstate your previous coverage, if you can. If that is no longer an option, you will have to shop for a new policy. When you\u2019re getting quotes, chances are you\u2019ll be penalized \u2013 by even the cheapest auto insurance \u2013 for lapse in coverage. You\u2019re going to pay more than you would otherwise, so learn from your mistake and do all you can to avoid it in the future.<\/p>\n\n\n\n If you are unable to afford the increased rates, there are a few options that you can try. None are ideal, but they\u2019re better than going without insurance.<\/p>\n\n\n\n Maintaining your auto insurance coverage is essential if you plan to drive at all. Paying your premiums on time and maintaining a safe driving record are the best ways to prevent a lapse. In the event that you ever do have a lapse, you now know what to expect and what you can do.<\/p>\n\n\n\n If you’ve had a lapse in car insurance coverage, InsureOne can help you get back on track. We specialize in providing affordable auto insurance to high-risk drivers and those who have had a car insurance lapse. Don’t go another day without coverage – request your free car insurance quote<\/a> from InsureOne today.<\/em><\/p>\n\n\n\n\n
Common Reasons for an Auto Insurance Lapse<\/h2>\n\n\n\n
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What Happens After an Insurance Lapse?<\/h2>\n\n\n\n
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What to Do If Your Insurance Lapses<\/h2>\n\n\n\n
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