How To Get New Car Insurance After A Lapse?

By Sharon Gibson Posted in Car Insurance News

Once you have allowed your insurance policy to lapse, it can be difficult to obtain new car insurance. Depending on the circumstances of the lapse, your insurance company may allow you to purchase a policy on a new car. However, if your credit rating is poor you may have a hard time even getting a new car let alone purchasing insurance for it. Before you being shopping for a new car find an insurance company willing to insure you first. You can get a preliminary quote based on your risk level, which is very high if you’ve lapsed on a policy.

Purchasing A New Car

If you are lucky enough to find a dealer willing to let you finance or purchase a new car, then your next call should be to the insurance company you found. You will need to give them the details of the car and financing before they will insure you .You will also have to provide proof of steady employment for at least six months before you can purchase the car or get insurance. Because of your lapse history you will be subject to more stringent guidelines regarding financing and insurance premium rate.

Reducing Your Premium

Since you will not be eligible for any of the discounts you enjoyed previously and could end up paying more in insurance than the monthly payment on your car, there are a few ways you can reduce your premium. If you are financing your car you may be required to carry comprehensive insurance on the vehicle. Companies that finance car loans typically have this as a requirement. If you have paid off the car in full, then your could purchase the minimum amount of insurance liability for the car, which would reduce your premiums. The best way to reduce premiums is to avoid lapsing, but once the damage is done you can maintain a good driving record and pay every payment on time to avoid further damage to your credit rating.

Related posts:

  1. What Can I Do If My Car Insurance Is About To Lapse?
  2. When Is An Auto Insurance Policy Considered Lapsed?
  3. How Does Comprehensive Insurance On Your Car Work?
  4. Which Auto Insurance Companies Take Clients Who Have Lapsed?
  5. How To Transfer A Vehicle’s Insurance In A Lapsed Period?

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