How Gaps in Coverage Affect Car Insurance Rates

How gaps in coverage affect car insurance rates

As you know that your auto insurance company considers many factors before finalizing your auto insurance rates, some of these factors are your age, gender, occupation, marital status etc. Auto Insurance Companies also note whether you have had proper insurance coverage or not and if have ever driven without auto insurance or not.

What is A Lapse in Coverage?

Lapse in coverage is the time frame during which you have never had any auto insurance coverage. Some of the reasons for a gap or lapse in insurance coverage are:


  • You forgot to pay your premium on time
  • Your car insurance company cancelled your policy
  • Your car insurance company went out of the business
  • You lost your license and allowed a coverage gap
  • You decided not to drive your car for some time period

In all such cases you may have a gap in auto insurance converge that is also called a lapse in coverage.

How Gap in Coverage Can Affect Your Future Auto Insurance?

Having gaps in coverage automatically makes you a risky driver and the insurance company will not give you insurance coverage in future considering your past lapse in coverage. Sometimes you are even denied to obtain auto insurance coverage in the whole market. In such scenario you have to obtain auto insurance coverage through state automobile plan that can be much more expensive.

The Cost of Driving without Auto Insurance

In most of the States in the US, it is compulsory to have some kind of converge, If yo don’t have that then you are expected to pay the following penalties.

  • Fines
  • License suspension
  • SR-22 proof for financial responsibility
  • Jail time

Apart from these penalties, you are also required to face the minimum chances of auto insurance by the company in the future.

What to Do When There Is A Gap in Coverage?

Firstly, you must consult your auto insurance company agent, immediately, as they will give you an alternate solutions depending on their policies. You can also consider replacing a bond if your State allows. Some States have provisions for low cost insurance.

Some companies have provisions for grace period. It means that they don’t consider this lapse seriously if it was due to being late in paying the amount of premium. But if the reasons are severe, then the penalties can also be severe. Still it depends on where you live and through which company you are getting your auto insurance coverage. If your company has dropped out then you must go to another company immediately.

So be a good driver, pay your Texas auto insurance premiums on time and get rid of all possible penalties and problems to get auto insurance in future.

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