Insurance Lapsed? Here’s What Happens

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Step One: Don’t Let It Lapse. but It’s Good to Know What to Do if It Does.

Let’s get something out of the way. You can never consciously allow your insurance to lapse. If you are going to use your car, you must have insurance. To operate it without being covered is an extremely bad idea.

Here’s why you must always have insurance:

Required by Law

In case you’re involved in an accident and some property has been damaged, or someone has been injured, the insurance coverage will take care of the costs. Therefore, the law requires every vehicle owner to also have the right insurance in case of an accident. It doesn’t matter even if you don’t drive the car. If you own a car, insurance is mandatory. If you’re involved in an accident and are not covered, then you may have to pay out of pocket and may even have to pay additional fines for not being insured.

Financial Risk

Imagine you get into an accident. If you don’t have insurance, you’re going to pay for everything, including the property damage, medical expenses, lawyer, fines, etc. yourself. That doesn’t sound like something you’d want to do, right?

Increasing Rates

If your insurance lapses, it may become much more difficult for you to get reinsured at a reasonable rate. You may even be classified as a high-risk driver. In that case, you may have to approach a company that specializes in high-risk drivers. The catch? Their premiums are always high.

Hurts Your Record

If you let your car insurance lapse, the company may be required to notify the authorities. This may cause it to become a part of your permanent record. You may be subject to fines or, in some cases, may even have your license suspended as a result.

Look out For the Lapse

Here’s what you should do in case you want to keep your driving record unblemished and your car insurance premiums affordable. Just keep an eye on the policy expiry date and renew it as required. It’s that easy. In case you want to upgrade your policy or believe that you could get a no-claim bonus, check with your insurance agent as well. This is also the person you must reach out to quickly in case your insurance lapses.

Be Responsible

Your insurance could also be canceled. This happens if you don’t pay on time or have too many driving offenses on your record. It is your responsibility to pay your insurance premiums on time every time. It is also your responsibility to follow the rules of the road. It is also in your interest to be a safe driver. Why would you want to risk getting hurt in an accident anyway? So, be responsible.

Look at Your Options

Do your research online, speak to your insurance agent, and check for any discounts that you may be eligible for thanks to your responsible behavior. This can help keep your premiums from inflating. You can also assess your level of coverage and adjust it based on your history or future requirements. Also, if it’s only been a few days since your policy has lapsed, most insurance companies allow you to reactivate your coverage if you renew it quickly.