Don’t Let a Lapse in Car Insurance Coverage Affect You

Car Insurance

If you’ve ever let your car insurance lapse, you know what a hassle it can be to remedy the situation. Letting your car insurance lapse is also a risky move. Learn the reasons you shouldn’t let a lapse in car insurance coverage affect you and what you can do to stay protected on the road.

Why you shouldn’t let your car insurance lapse:

  • It’s illegal. First of all, driving uninsured is against the law in all states. It can also come with hefty fines, unwanted tickets, and points on your record.
  • It can cost you more in the long run. When you let your car insurance lapse, your insurance provider can assess a surcharge to reinstate coverage and raise your premium because they may consider you a greater risk due to your irresponsibility.
  • You may miss out on discounts. Some auto insurance companies reward customers for loyalty with a long-time policy holder discount. However, if you accidentally allow your car insurance coverage to lapse, you may forfeit that savings.
  • It could impact your driving record. Some states require insurance companies to notify the Bureau of Motor Vehicles when a customer drops their car insurance. Even if you accidentally let your car insurance lapse, there’s a chance your license can be suspended and in some instances, your car can even be seized.
  • You lose your protection. When you have a gap in your car insurance coverage you lose the security of knowing that you’re protected if an accident happens. This puts you at great financial risk.

How to ensure your car insurance never lapses:

  • Always pay your bill on time. The best way to ensure your car insurance doesn’t lapse is to make timely payments. Some companies even let you set up automatic payments online or through your bank.
  • Don’t leave a gap between your old and new policy. According to, you should never cancel your existing policy until you’ve confirmed your new one is effective. So wait until you receive proof of your new insurance policy before cancelling your old one.
  • Shop around if you think you may get dropped by your provider. If you think you’re at risk of being dropped, make sure to shop around for other online car insurance quotes and secure a new policy before it actually happens.

It’s your responsibility to ensure your car insurance doesn’t lapse. Follow these simple tips to guard against a gap in your coverage. Car insurance is there for your protection – so stay covered and make sure you have the policy you need to stay safe and secure on the road.

– By: Jess Penick