I accidently let my Auto Insurance Policy Lapse, what should I do?

Answer:
Contact your insurance company right away and

see if you can get your policy reinstated. Driving without auto insurance is against the law in most states. Missing a single premium can result in an automatic policy lapse and, unlike many other forms of insurance, auto insurance doesn’t usually have a grace period.

If your insurance company agrees to reinstate your policy, your new coverage will take effect on the reinstatement date. This means that any losses that occurred while you were uninsured will not be covered.

Your insurance rate may go up as a result of the lapse especially if you previously received a discount for paying premiums on time or continuous coverage.

A lapse in auto insurance not only leaves you unprotected and uninsured, you may also be penalized by your state’s department of motor vehicles. Depending on the state’s laws, you may have to pay a fine, your car’s registration may be revoked, or your driver’s license may be suspended. The sooner you get your coverage reinstated or purchase a new auto insurance policy, the better your chances of avoiding these penalties, many of which kick in within 30 days.


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