Please Select AutoHealthLifeBusiness

When Is An Auto Insurance Policy Considered Lapsed?

By Mike Anderson Posted in Car Insurance News

There are many reason why your car insurance policy would lapse. The most common of these is non-payment. When you don’t pay your car insurance, premium car insurance companies will typically give you thirty days to make the payment before the policy lapses. Simply, this means that your insurance company cancels your policy. Once they cancel your policy, then you no longer have insurance on your car. That sets you up for enormous liability should you be involved in an accident while your insurance lapses. Your policy is considered lapsed until you either renew your policy or find a new insurance company.

What To Do

Has your policy lapsed? You may be wondering what to do next. If you have let your policy lapse the damage is pretty much done, but not all hope is lost. If this is your first lapse and you have otherwise maintained a clean driving record and a reasonable credit rating, then finding insurance should not be a problem. You may even have luck if you call your insurance company and ask them to reinstate your policy. This will be, of course, at a higher premium then before and the discounts you enjoyed previously will not apply anymore.

If your current insurance company isn’t willing to give you a second chance, there are companies that offer insurance to lapsed policy holders. This will once again be at a higher cost but at least you’ll be covered.

How To Prevent Lapses

The biggest way to prevent this from happening again is to make your payments are on time. If, for some reason, you are unable to make a payment on time or at all, call your insurance company. You have a couple of options. They will either give you an extended period of time to come up with the payment or you can initiate the canceling of your policy. If you cancel your policy before it lapses then you will be able to purchase car insurance again without restrictions. If you allow the policy to lapse from nonpayment then you will be forced to deal with the consequences.

Related posts:

1. What To Do If Your Low Cost Car Insurance Has Lapsed?
2. Which Auto Insurance Companies Take Clients Who Have Lapsed?
3. How To Transfer A Vehicle’s Insurance In A Lapsed Period?
4. What Can I Do If My Car Insurance Is About To Lapse?
5. How To Get New Car Insurance After A Lapse?