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What To Do After A Car Insurance Lapse

Forgetting to pay our auto insurance can happen to any one of us. We are busy with our daily tasks and routine and well, we totally forget that some bills must be paid. Well, if you get a coverage lapse, things can get pretty bad. And, it’s even more so, if it’s been some time since it lapsed and you are just figuring out. That means you’ve been driving around without coverage of any kid. You should feel a bit lucky if you weren’t caught by now by the authorities. Nevertheless this is a risky situation. Find out what to do after a car insurance lapse. If you need to find cheap insurance, check our website and get insurance quotes auto online.

lapse2The first thing you should do is to talk with your insurance company immediately. It’s important to keep in mind that the amount of time a driver goes without being covered by a valid auto insurance policy will determine the outcome for this situation. Drivers who go without coverage for just a few days due to forgetting to pay their bill are easily reinstated by their auto insurance provider. Even more, based on your past payment history and driving record, with longer lapses, you may still possibly be eligible for reinstatement if your insurance company wants it.

Most of auto insurance companies understand that a missed payment is usually unintentional and there are high chances to extend coverage to you again once you pay your debts. But, insurance providers have no obligation to reinstate coverage and no law mandates they do. The good news is that customers who have been insured by the same insurance company for some time and whose driving record is clean, will have better chances of being reinstated.

The procedures auto insurers use to reinstate a policyholder differ from one company to the next. Your insurance company may simply renew your previous policy or they may require you to reapply for new and usually more costly coverage. They may also require several payment options as a condition for reinstatement. These may include using a credit card, ATM card or banking account information on file for automatic withdrawal each month so that you will not be able to forget to pay the bill again.

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