What Happens If Your Car Insurance Lapses?

An automobile insurance policy lapse occurs if you don’t pay your monthly premiums to renew it by the due date, just like other insurance policies. Consequently, you would be no longer eligible to make any claims under your automobile insurance coverage and would be liable to pay for the incurred damage from your own pocket.

Whether unintentional or deliberate, allowing your auto insurance to lapse can have severe consequences. If you get into an accident, you will have no financial coverage. Fines from the state and higher insurance premiums can also result from driving without insurance, which is illegal.

Here’s an insight into what would happen if your car insurance lapses:

Steps To Take

It is vital first to contact your auto insurance company. When your automobile insurance policy expires, the company may still accept a basic renewal. You must apply to acquire a new policy. Search several insurance companies to find the best bargain on a competitive premium.

You must gather all of the paperwork from your expired insurance and store it somewhere safe. Documentation for previous claims is essential, such as receipts, bills, and other supporting documents.

Auto Insurance Grace Period

Depending on your policy, certain insurance firms may grant a limited grace period after your premium payment is due. Insurance companies are less likely to reinstate your policy if your coverage expires because you took advantage of a grace period.

Premium Rates Go Up

If you let your auto insurance policy lapse, you may lose your ability to get new coverage. Customers who can’t demonstrate proof of continuous coverage for an agreed period may find it challenging to obtain an insurance policy from their chosen providers. As a result, insurance firms charge higher premiums to insure drivers with a limited insurance history.

Accident After Car Insurance Lapses

You may be able to get compensation from the other driver’s insurance if your uninsured car has an accident. However, if the police cannot ascertain who is to blame for the collision, they are more likely to conclude that you are the responsible party because you failed to show proof of valid car insurance.

In a nutshell, you would have to pay for vehicle damage and medical bills out of your pocket if your car insurance lapses. You would also incur the additional danger of seeing your rates rise.

Regular and timely monthly premiums payments can help avoid car insurance lapses. Auto-renewal of your insurance and the ability to set up recurring payments are two of the most common options.

Are you searching for a reliable auto insurance company near you? Pronto Insurance provides excellent vehicle insurance services in San Angelo. We also provide satisfactory home and health insurance services to our precious customers.