Getting Auto Insurance After Lapse Coverage

​Having a lapse in your auto insurance sets you as a risky customer to insurance companies. For them, having a lapse coverage increases your likelihood of getting into a vehicle accident. Hence, insurance companies are expected to raise their rates. 

Explaining Auto Insurance Lapse
Auto Insurance lapse happens when the insurance policy rescinds without coverage elsewhere to take it over. States have variations of laws around auto insurance lapses. However, most insurance companies still give customers a grace period of 10 and 20 before cutting their insurance. 

Generally, the cause of auto insurance lapses is mostly not paying premiums and vehicle accidents. Insurance companies can cancel policies for rare circumstances if the insurer thinks that the customer has committed fraud. They can also cancel on grounds of health complications that make them unfit to drive. 

Things to Do if You Have an Insurance Lapse
Insurance lapses in coverage are common, and restoring your policy or getting a new one can be easy. Here are some of the things you need to do if you have an insurance lapse:

1. Call Your Insurance Company
The first thing you need to do is call your previous insurance company and ask them how long you have been without insurance coverage. There will be instances where you recently missed a payment, but the insurance hasn’t been terminated yet.

2. Check if the Insurance Company can Restore the Policy 
Ask the insurance company if they can still reinstate the canceled insurance coverage. If the company can restore the insurance, you’ll maintain the insurance with the previously covered coverage. Paying the past due balance is a must when reinstating because you’ll be covered without any lapse. 
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3. If the Policy can’t be Restored, Purchase a New One
Get a new policy right away if the insurance company cannot reinstate the policy. Although purchasing a new policy may cost a lot, you still need to be insured before driving. Most insurance companies can start coverage instantly. 

How to Avoid a Policy Lapse: In Conclusion
To avoid insurance lapse, you must be honest with your insurer, pay premiums on time, and keep your car in good condition. Below are some tips to avoid a car insurance lapse:

1. Pay premiums on time.
2. Drive safe and avoid traffic violations
3. Maintain a clean record in your license
4. Maintain your car’s safety

At UG Insurance Brokerage Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote.