If Your Policy Has Lapsed, Take Action Now
Posted on: 13 July 2020
In order to ensure you are operating your vehicle under the terms of the law and that your vehicle is protected, you want to maintain continuous car insurance coverage. However, there are instances when an auto insurance policy may lapse. If you find yourself in this sort of situation, make sure you know what to do.
Find Out Why the Coverage Ended
As soon as you discover that your policy has ended, you need to contact the insurance company right away to find out why it has happened. Sometimes, it is an issue caused by the policyholder, and other times it can be a clerical error on the part of the insurance company. No matter what the reason is, once you know what has happened, you can then work to resolve the issue.
Try to Get the Policy Reinstated
It is important that you work to get your policy reinstated as soon as possible. State laws typically require that coverage remain continuous, so even if you do not have coverage for one or two days, you are still violating the law. Additionally, insurance protection stops immediately when the policy is terminated. If you are involved in an accident, you will not be covered, so you need to seek new protection right away.
Shop Around for Coverage
If your policy lapsed because you were unable to afford the coverage, you should take this opportunity to shop around for new coverage. The reality is that the price for the same policy with the same coverage options can vary significantly from insurance company to insurance company. Rather than worry about not having coverage, you should instead search for a policy that might be more economical.
Learn About Penalties
Depending on how long it has been since your policy ended, you may be subject to certain penalties. For example, if it has been an extended period, the state may require that you pay a fine, even after the policy is reinstated. You could also face a fee if you have specialized policy options, such as an SR-22. You could also face a reinstatement fee from the insurance company. Find out what fees you may be entitled to pay as soon as possible so that you can plan accordingly.
Remember, if your auto insurance policy lapses, the most important thing for you to do is act. The longer you wait, the longer you will be without the coverage you need and the more that could happen.
To learn more, contact a car insurance company.
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