What Should You Do If Your Auto Insurance Policy Lapses?

What to do if your auto insurance policy lapses

Being a driver you must know about the circumstances in which your insurance policy lapses may get a lapse and it is essential to know what to do next. The following post will teach you how to cope up with Auto Insurance Policy Lapses.

In such a situation you will have to pay fines and penalties but the primary questions are how will be you be able to get your coverage back?

What Is An Auto Insurance Policy Lapse?

An auto insurance lapse in coverage means that you own a vehicle that no longer is in the state that requires coverage limits.

The auto insurance company counts the time of your lapse in coverage from the time it stops until:

  • You get a new car insurance coverage
  • Your auto insurance coverage is renewed
  • Your vehicle registration expires
  • You offer proof that your vehicle no longer requires auto insurance coverage
  • You have purchased the minimum coverage limits in your new state

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Common Reasons for Lapse in Coverage

Many of the times this issue comes due to the cancellation of coverage. But why does the company cancel your coverage? It is often due to the following reasons:

  • Non-payment of premium
  • Late payment
  • Failure to renew
  • Excessive traffic violations

If your insurance company drops you out of any coverage, then you must go to get coverage before the time may end.

What is the Cost of an Insurance Policy Lapse?

The insurance lapse does not only cancel your coverage, but it also results in too many other problems as well, they are listed below:

  • License suspension
  • Vehicle registration suspension
  • Fee for renewal the insurance coverage
  • SR-22 financial responsibility filling requirement

Driving while being uninsured also results in severe penalties. Some of them are:

  • Fines
  • Community services
  • Driver license suspension
  • The increase of your premium

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How to Handle an Expired Policy?

Being a driver you must be ready to handle different kinds of emergencies. The cancellation of your car insurance policy is also one of the biggest problems but you can handle this problem as well, just remember:

  • If your policy has expired, then contact your carrier instantly. He will tell you about the renewal of the policy and the alternative ways to handle this issue.
  • Don’t drive your car until you get a new policy or get the renewal of your policy lapses. If you will continue driving, then you will be taken as an untrustworthy driver.
  • If your policy was canceled due to non-payment for violations, then try to pay that immediately. In such case, your auto insurance company will renew your auto insurance coverage Texas.

But if it is refused for renewal, then you must immediately consult another company agent and seek for auto insurance coverage from another auto insurance company. It is very necessary to avoid the lapses or gaps in coverage.

How to Avoid Future Insurance Lapses?

Once faced the cancellation of coverage, you must be very careful for the next time. Here a few tips that can help you to avoid future insurance lapses.

  • Make sure that your license registration and other information are correct
  • Surrender the plates for the car that no longer belongs to you
  • Respond to all the corresponds from the company in a timely manner including on-time payment of premiums.
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