We all have times when some things slip our minds, but letting your auto insurance lapse can ultimately be costly. We’ll discuss what defines a lapse, the potential consequences of letting auto insurance lapse, and ways to avoid it. Access Legacy Insurance Group in Brooklyn, NY is here to assist.
What Is an Auto Insurance Lapse?
An auto insurance lapse refers to any amount of time that you have a registered vehicle but don’t have current insurance coverage. Some reasons you might have let this happen are missing a payment; you get deployed, your policy running out, you sold your car, no longer driving, or other reasons. As a result, your policy will be canceled by the insurance provider.
Potential Consequences of Letting Auto Insurance Lapse
There are several potential consequences of a lapsed policy, including no financial protection if an incident occurs. In most states, a minimum of liability level car insurance is required, and penalties and fees and even suspension of your driver’s license can occur should your coverage lapse. Many insurers see customers with lapses as being riskier customers. This means almost certainly facing higher insurance premiums when obtaining a new policy.
How Can Auto Insurance Lapses Can Be Avoided
Ideally, it’s best to not let your coverage lapse at any point. However, if it has, there are a few ways to stay mindful of when your payments are due and keep them on track at all times. Maintaining auto insurance can avoid certain costs and perhaps, even save you money. These include:
- Take Advantage of Grace Periods
- Sign Up For Email Reminders
- Consider Autopay
- Keep Your Budget in Mind
Has Your Auto Insurance Lapsed? Call Us!
If your car insurance policy has lapsed for any reason, we can help you with a new policy. Contact Access Legacy Insurance Group in Brooklyn, NY to talk to an agent today.
