“Having a car insurance lapse is something most drivers don’t want to deal with. Besides risking a large fine and higher premiums, drivers who get caught driving without insurance also risk getting jail time”, said Russell Rabichev, Marketing Director of Internet Marketing Company.
LOS ANGELES (PRWEB) November 08, 2021
Compare-autoinsurance.org has launched a new blog post that presents what is a car insurance lapse.
For more info and free car insurance quotes online, visit https://compare-autoinsurance.org/what-is-a-car-insurance-lapse-and-how-to-avoid-it/
When a driver has a lapse in coverage, it means they don’t have car insurance for a period of time. When this happens, the driver will be penalized by paying more for his rates, no matter what insurance company he has, or whether the lapse was intentional or accidental. Also, drivers caught driving without insurance can get fines, tickets, suspended licenses, and even jail time. For these reasons, drivers are advised to get at least the state’s minimum insurance coverage.
To know more about car insurance lapse, drivers should know the following:
- What is a lapse in coverage. An insurance lapse is a period of time when a registered car does not have the state's minimum amount of car coverage. This happens when the policy is canceled because the premiums have not been paid, the policy has not been renewed when it ended, or if the driver gets dropped by his insurance provider after too many accidents or tickets. A lapse in coverage usually means drivers need to reinstate with the company they were previously with, if possible, or find a new insurance company.
- How to avoid a policy lapse. In order to avoid a policy lapse, policyholders need to pay their car insurance premiums on time and keep an eye on their policies, to be ready to renew them. Also, drivers should carry at least the state’s minimum required insurance. In order to lower their risk to be dropped by their providers, drivers should drive safely to keep their driving records clean. Furthermore, policyholders should always get an insurance policy they can afford.
- What is a grace period. Drivers who missed a payment, or failed to renew their policies on time, will be notified by their providers before the coverage is dropped. Usually, drivers will have a 10-20 days period of time, called grace period, to make a payment before the policy is being canceled.
- What happens if the car is leased or financed. Usually, the lien holders will require drivers to carry more than the state’s minimum insurance. If the insurance lapses on a leased or financed car, the lien holder could repossess the car or ask for an insurance policy that the driver will have to pay at a much higher rate.
- What consequences does an insurance lapse has. If the driver causes a car accident or he damages property while he is not insured, he will be responsible for paying all of the expenses involved, including paying for the other party’s property and medical bills, his car, and his own medical bills. Also, drivers caught driving without insurance can get a $5,000 fine, have their license suspended, their cars impounded, and they can even get jail time.
- How to get car insurance after a lapse. If the lapse was brief and due to a missed payment or renewal, the provider may reinstate the policy after the driver pays. However, in some cases, it’s going to be harder and more expensive to get reinsured after a lapse. Once the driver finds an insurance provider, the state may require the driver to file an SR-22 form that proves the policyholder is carrying the minimum required insurance.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org
Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.