Which Auto Insurance Companies Take Clients Who Have Lapsed?

By Mike Anderson Posted in Car Insurance News

Any time that a driver has a lapse in their insurance policy major problems can arise. An insurance policy lapse can occur from not paying your premiums or when switching from one policy to another. During the time that your policy lapses you are not covered by any insurance, and in many states this is illegal. Many states require a minimum amount of auto insurance coverage, and driving during a lapse in your insurance is the same as driving without insurance.

Not only will letting your insurance policy lapse get you into legal trouble, but it can cost you a lot of money. Not paying you car insurance premiums or paying them late will lead to a lapse in your policy and your insurance company may even drop you. If your policy lapses and you go without insurance for an extended period of time, usually twenty-five days, insurance companies will then consider you to be a high-risk driver. Being moved into the high-risk category means that you will pay significantly more in insurance premiums, and it will be harder for you to find an insurance company that will insure you.

A Lapsed Policy Means That You Are  A “High Risk” Client

Because drivers who have had their policies lapse in the past are considered by insurance companies to be risky clients to take on, many insurers will deny them coverage. If this is the case you would have to buy auto insurance from a high-risk insurance provider. These insurance companies are usually smaller name insurers, and will usually charge drastically higher premium rates because many times the drivers that they insure cannot get coverage from other insurance companies. Even with a lapse in your auto coverage it still may be possible to get a policy from a reputable car insurance company, but you will have to pay more for your coverage than you did before the lapse.

The best thing you can do is shop around for a policy that offers enough coverage at a reasonable rate. Even if you are considered to be high risk you most likely can still find a dependable insurance provider to get a policy from.

Related posts:

  1. Which Insurance Companies Do Not Look At Your Driving Record?
  2. How Does Assigned Risk Auto Insurance Work?
  3. What To Do If Your Low Cost Car Insurance Has Lapsed?
  4. How To Get A Affordable Auto Insurance Policy After A DUI Or DWI?
  5. How Do You Buy A Young Person’s Car Insurance Policy?

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