Understanding and Addressing the Consequences of Letting Your Car Insurance Coverage Lapse

If you own a registered car, it is important for you to keep your insurance coverage current. Having a lapse in your insurance coverage can result in negative consequences. There are steps you can take to ensure you don't have a lapse in coverage. Here's a look at what to do.

Pay Your Bills on Time

First, you need to make sure that you pay your bills on time. By paying your bill on time, you should not lose your coverage. If you pay your bill on time, your car insurance should remain current. The best way to ensure that you pay your bills on time is by setting up automatic payments for your insurance coverage.

Always Carry the State's Minimum Coverage Level

Next, you need to make sure that you carry the state's minimum insurance coverage level. If you are carrying below the state's minimum insurance coverage level, then you will be considered to have a gap in coverage even if you still have insurance. Always double-check that you are carrying the right amount of coverage for your state so you don't have a legal gap in coverage.

Be Safe on the Road

It is important for you to be safe on the road. If you get into multiple accidents or run up multiple traffic tickets in the course of a single year, you run the risk of your insurance company dropping you. If your insurance company drops you, then you will have a gap in insurance coverage.

Shop for Insurance You Can Afford

You should also shop around and make sure that you find a premium that you can afford. Different insurance companies will offer you different premium rates, which is why it is important to shop around and compare coverage. Shopping around and comparing coverage so that you have a policy you can afford will help you maintain your payments and not lose your coverage.

Pay Attention to Your Grace Period

In most states, your car insurance company has to contact you and give you a warning before they can cancel your policy. During this grace period, if you are able to pay the money in order to become current on your policy without your policy being canceled. If you are offered a grace period to catch up on your insurance payments, don't ignore it, as the grace period is your last chance to get current on your auto insurance policy.

Lapsing Coverage Can Drive Up Insurance Costs

If you allow your coverage to lapse, check with your current insurance and see if you can play a lapse insurance fee in order to get your coverage back. If your insurance company doesn't offer this privilege, then you are going to have to pay a lot more for insurance coverage once you find a company willing to provide you with insurance coverage.

It is important to maintain insurance coverage. A lapse in coverage will drive up your car insurance costs and if you get into an accident while experiencing a lapse in coverage, all of the financial responsibility will fall on you. Learn more by contacting services like AAC Insurance Group.