If you have a license and drive a vehicle, you know that it is against the law to not have car insurance on the car that you’re driving. The amount of car insurance can vary, but it is a law that everyone has at least minimal insurance coverage. So, what happens when someone lets their car insurance lapse? Sometimes car insurance can lapse accidentally, and other circumstances lead to an intentional lapse in coverage. InsureWise LLC is here to talk about what that means for the driver to let their insurance coverage lapse.
Meaning of “Lapse” in Auto Insurance Coverage
For those that see a lapse in insurance coverage for their vehicle, it means that for a time period, there is no coverage should they need it for a registered vehicle they are driving. Sometimes, this can happen because that person has failed to pay their insurance premiums, or it also happens when a policy ends, and the driver doesn’t renew it. There are some circumstances when an insurance company will drop you as a customer because you have too many tickets or accidents on your record.
How to Avoid an Insurance Lapse?
There are several things that you can do to make sure your auto insurance doesn’t lapse.
– Pay your insurance premiums on time. This way, you don’t run the risk of your policy getting cancelled and the company dropping you.
– Drive safely to avoid getting in too many accidents or accumulating too many tickets. The lower risk you are in your car, the more likely it is that the company will keep you on.
– Make sure you’re choosing an insurance rate that you can handle and fits in your budget. It may sound nice to have more coverage, but if you don’t have room for it in your budget, it can be more difficult keep up with payments.
– Carry your state’s minimum insurance coverage. Every state is going to have different requirements as far as auto insurance goes. Most states will require you to have at the bare minimum, liability insurance.
What is the Grace Period for Car Insurance?
For most companies, if you fail to pay your insurance premium, they will give you a grace period of 10-20 days to get caught back up. Try to avoid making this a habit as they don’t want to keep you on as a customer if they think you are at risk of not paying each month. If you do get dropped by an insurance company, work quickly to get new coverage. The longer you go without coverage, the harder it will be to find a new company that will take you on as a customer.
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If you are in need of auto insurance, you can turn to InsureWise LLC to help you find the coverage that you need to drive on the road safely. Call us today or click here to fill out this easy quote form.