LOS ANGELES, Feb. 11, 2022 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog post that shows how drivers should handle car insurance lapses.
For more info and free car insurance quotes online, visit https://compare-autoinsurance.org/how-drivers-should-handle-a-car-insurance-lapse/
A car insurance policy can lapse for several reasons. Unpaid premiums, policy cancelations due to an excessive number of tickets or accidents, and others can lead to a car insurance lapse. Driving with lapsed insurance is never a good idea. In some states, drivers can risk jail time if they are caught driving with lapsed insurance. Insurance companies consider that a car insurance lapse occurs if there was no auto insurance coverage for 30 to 60 days. Also, drivers with lapsed insurance will be labeled as high-risk and will pay more for their insurance when they finally get one.
To better understand a car insurance lapse and its effects, consider the following:
- What do with a car insurance lapse? If the car insurance lapses, drivers should contact their providers immediately. For better results, they should speak with a representative before the policy lapses. To lower the costs of the premiums and to make the policy more affordable, the insurance representative may suggest the policyholders take advantage of discounts or raise their deductible. After the car insurance lapses, the policyholder can expect to pay more for the insurance. If the policy has been renewed within a month, the policyholder can expect to pay 9% more on his premiums. If the lapse lasted up to 60 days, the policyholder can expect to pay 48% more on his insurance. However, if the policy has lapsed for more than 60 days, the insurer will likely refuse to renew the policy. In some states, drivers who incurred a car insurance lapse will have to pay a license and registration reinstatement fee. In other states, drivers will need to file an SR-22 form.
- What drivers can do if they are not using their cars for an extended period of time? In most cases, these drivers can go to their providers and ask their insurance to be suspended for a specified period. However, in some states, the drivers will need to obtain an affidavit from the state DMV. A suspension of insurance is not considered a lapse.
- The insurer's car insurance lapse grace period. Policyholders should receive notice before an insurance company cancels their policy. Grace periods generally range between 10 and 20 days to allow the policyholders to pay their bills and avoid policy cancelation. If the lapse in the grace period is very short, providers will usually reinstate the policy.
- What happens if the driver has an accident with lapsed insurance? If the driver lives in an at-fault state, and he was not at fault for the accident, the driver with a lapsed policy can contact the at-fault's driver provider and file a claim. If the driver lives in a no-fault state, where the driver's insurance is responsible for covering their own injuries and any damage to the vehicle, he is not covered if the insurance lapsed. Also, the driver is not covered in a fault state if he was the at-fault driver.
For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/
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SOURCE Compare-autoinsurance.org
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