4 Important Things To Do After Your Car Insurance Lapse

Insurance Blog

A lapse in your auto insurance is when your vehicle doesn't have the minimum coverage required in your state. A lapse occurs after your coverage expires until you acquire new insurance. Lapses occur for many reasons like nonpayment, late payment, not renewing, or cancellations due to numerous traffic violations. If you find yourself in the middle of a car insurance lapse, follow the below four steps. 

1. Contact Your Insurance Carrier

When a lapse occurs, the first step to take is to call the carrier your lapse occurred with. If this is your first lapse, they may be willing to reinstate your policy with minimal penalties, if any. This would be the ideal solution. 

2. Use an Alternate Form of Transportation

Driving a vehicle without insurance is illegal. Do not use your vehicle while it is not protected. Ask a friend or family member to take you to work and school or apply for a bus pass and use public transportation for the time being. 

3. Shop For New Insurance

Long lapses in insurance can reflect negatively on your driving record. Find a new insurance as soon as possible. If you wait too long, you may be labeled as a "high risk" driver and your premiums will increase. High-risk drivers often have trouble with car insurance prices if a carrier will insure them in the first place.

4. Avoid Future Car Insurance Lapses

The most important thing to do once you have insurance on your vehicle again is to avoid a lapse in car insurance in the future. Make sure you do the following to avoid a similar situation:

  • Pay Your Car Insurance First: After your housing payment, make sure you pay your car insurance first so that you don't forget or spend the money. This is a great way to avoid nonpayment.
  • Always Pay Before The Due Date: Set up a reminder of your payment due date a week in advance in your phone's calendar. This gives you ample time to get additional money together for the payment and avoid a late fee. 
  • Drive Safely: Traffic violations and severe accidents can cause the cancelation of a policy. Obey traffic signs, drive at the speed limit, and make sure you drive carefully.

As you can see, lapses sometimes occur due to a variety of reasons. After a lapse in coverage, be sure to follow the above four steps to help you regain insurance coverage. Talk to experts like Western Insurance Agency for more information.

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