Even without the pandemic, there are times when some people may find it necessary or unavoidable to drop their car insurance. Before doing so, you should understand the potential consequences. Remember, car insurance is required nearly everywhere in the United States, with stiff penalties for driving a car on public roads without it.
Read on to find out what happens when your car insurance lapses.
What Is a Lapse in Car Insurance?
Most states require you to have car insurance in order to register your vehicle. If you drop or lose your car insurance once the vehicle is registered, this is considered a lapse in coverage. Depending on where you live, this could mean fines and penalties and the longer you go without car insurance the higher your rate will be when you buy a new policy.
There are a few reasons that this may happen to you, including reaching the end of our policy period and forgetting to renew, a cancelled policy due to a missed payment, or even being deployed overseas.
The problem with any of these scenarios is that once you have a lapse in your car insurance, you will automatically be put into a higher risk category with your insurance company. This translates to higher premiums when you buy insurance later. For this reason, it is almost always better to keep your insurance, even with the minimum values, than to have a lapse in auto insurance coverage.
How Can You Avoid a Lapse in Car Insurance?
As stated, it is always better to avoid a lapse in coverage. Avoid losing your policy or having it cancelled by:
- Lower your coverage to state minimums to keep your premium low
- Always pay your premiums on time
- Be a safe driver to avoid cancellation
The bottom line is this: you should do what you can to avoid a lapse in insurance coverage. If all else fails, let’s look at what you can do if you just can’t avoid it.
If You Have a Lapse in Car Insurance Coverage
Driving without car insurance can lead you to even bigger problems than you may already have. If you have a lapse in car insurance and you must drive, you should find a way to get covered again.
If you are constrained financially, see if you can find an affordable policy by:
- Choose lower limits
- Take advantage of discounts
- Set higher deductibles
- Shop around
Shopping around and comparing rates from many different insurance companies remains the best way to find a rate you can afford for a policy that provides the protection you need.
The InsuranceWins form is just the place to start. With just a little bit of information, you can compare quotes from multiple insurers in order to find the best savings on car insurance.