What is lapse in car insurance?
A lapse in car insurance means a gap period between you registered a car, but do not have car insurance.
The duration of a car insurance policy lapse can range from a day to two weeks, depending on the insurer. The time the car spends without being insured is deemed a lapse. Getting auto insurance for the lapse in coverage is pivotal to ensure your safety and to prevent any penalties.
How We Can Help in Car Insurance After Lapse in Coverage?
A lapse in your car insurance coverage can mean you are still driving your vehicle without any kind of protection. At ICarInsuranceUSA, we can help you in the following ways:
How to Deal With Car Insurance Policy Lapse?
Did your car insurance policy lapse? Here is what you should next.
- Speak To Your Insurance Provider: The first step is to speak to your insurance provider and find out how long you have been without coverage. If your car insurance policy lapse was recent, or if you only missed one payment, then the policy may not have been canceled yet.
- Try to Reinstate Your Policy: Find out if you can reinstate your auto insurance with lapse in coverage. You may have to pay your past due balance to do so. However, you can continue the same policy without missing coverage.
- Get a New Policy: If you have tried both of the above and turned up empty-handed, then it is time to get new auto insurance with lapse in coverage. It might be slightly more expensive than your regular insurance policy, but driving without insurance is an offense, and a new policy is the only way forward.
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How To Get Car Insurance With Lapse?
Now that you have some idea regarding what is lapse auto insurance, it is time to know about the types of premium rates that you are likely to be offered by insurers. It is vital to activate coverage for your car the proposal could come at a huge cost.
This is primarily because of your inability to maintain car coverage which most of the auto insurance companies perceive to be a risky and irresponsible driving behavior. It also implies blatant violation or federal and state laws that can further add to your financial woes in the event of an accident.
ICarInsuranceUSA can assist you to learn about the exact process to get your vehicle reinsured and let you get knowledge of current trends in post lapse of third party car insurance coverage.
What happens if your car insurance lapses?
Driving a car uninsured
The majority of the states require resident drivers to carry basic liability coverage for cars. Such a cover pays costs for another person's bodily injuries treatment and damages caused to an unknown person’s property by the insured car. If coverage has lapsed and your car meets with an accident causing bodily injuries to other persons or property damages, you may have to bear all the costs on your own.
Impact of driving records
In a few states, insurers are allowed to verify drivers’ driving records with the DMV. This lets them know whether there is any previous lapse of coverage. Lapse of insurance can lead to a hike in premium.
If you drive a car uninsured and get involved in an accident, the situation can adversely affect your finances. You may be sued by other parties and could be required to pay costs for lawyer’s fees and resulting damages.
Reasons to cancel policies
There could be two major reasons for canceling a car insurance policy - non-payment of premium or too many driving offenses. Multiple traffic tickets or accidents on your driving record can lead to policy cancellation.
Insurance rates increase
You may wonder, “What happens if car insurance lapses?” Well, it will have a direct impact on future premium rates. There will be a substantial rise in your car insurance premium because of increased risks.
Cheaper coverage options
It is possible to keep your auto insurance premium low even if coverage has lapsed. You need to talk to a competent local agent to learn the tricks of securing affordable car coverage post a lapse.
4 SIMPLE TIPS TO PREVENT A LAPSE IN CAR INSURANCE COVERAGE
- If you have opted for paying the premium monthly, you must make sure that you don’t miss a single payment.
- In case, you aren’t in a position to buy comprehensive coverage, which is expensive, you can purchase minimum liability coverage for bodily injuries and property damages as is prescribed by your state law. That may be a much cheaper alternative.
- A clean driving history can enable you to qualify for the cheapest car insurance with lapse. Hence, while driving your car make sure that you obey traffic rules and regulations. Such a prerogative may help you to maintain spotless driving record.
- Determine the exact amount of coverage you will need to insure your vehicle and make sure it is within your budget. Icarinsuranceusa.com can assist you to get a customized solution.
FAQs on Auto insurance lapse
Get Help Online To Make The Task Of Buying Car Insurance With Coverage Lapse Smoother And Hassle-Free
A lapse in auto insurance coverage can lead to your being tagged as a high-risk driver by most of the insurers. This makes companies charge substantially higher premiums for drivers whose impression is one of being highly irresponsible persons who have violated law rather carelessly. The perception is that such drivers may even be engaged in reckless driving practices when on road and get involved in accidents.
The term “car insurance lapse” refers to the time period during which a driver fails to carry valid car coverage that is mandated by national law. To that effect, if your vehicle coverage has lapsed, it is vital that you get it reactivated with your existing insurer or work with a new company. Or else, you might have to pay hefty fines, if caught by a traffic inspector for driving your car uninsured.
No, since missed monthly premium payments are not reported to all the major credit bureaus in country by insurers, there will be no impact on driver’s credit score.