Sure, you’ve got your reasons – you were on vacation, your dog at the premium notice, your wife was having a baby, your check was lost in the mail, etc., etc. All perfectly good excuses; none, good enough, unfortunately. An insurance lapse is serious business, and not just because your insurance company has more work to do to reinstate you. In many states (yours?) a lapse in coverage is grounds for a penalty. Sometimes, a very big penalty, even if you didn’t drive the car during the lapsed period.
In some states, when (not if, it’s never if) a lapse in auto insurance is reported to the motor vehicle agency, your driver’s license may be suspended. If your driver’s license is suspended and you’re stopped by the police you could be hauled off to the pokey. And it doesn’t get better from there. There’s also license revocation, turning in your car’s plates or tags, significant penalties and fines and having to stand in line at the motor vehicle agency.
Is any of that worth a lapse in your insurance coverage?
So, what can you do? Call your insurance agent as soon as possible and get your policy reinstated; some insurers can do this right over the phone or online and it can take immediate effect. You will not be covered for the lapsed time, though, there’s no retroactive coverage; a new coverage period begins when you make the premium. One other “cost” you should be aware of: A lapse in coverage may mean a hike in your premium, too, and that is within the insurance company’s rights.
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