Why It’s Important to Avoid Letting Your Car Insurance Lapse

If you do not stay up-to-date on your car insurance payments, you might find that you end up with a lapse of coverage. What this means is that for a period of time, until you reinstate your coverage, you will not have car insurance at all. These are a few reasons why this is something that you will want to avoid at all costs.

It’s Illegal

Depending on where you live, you could be charged with a criminal charge if you are caught driving your car without any car insurance. This could lead to all sorts of problems; for example, you could end up actually getting arrested, and you could have to post bond in order to get out of jail. You may also have to pay attorney fees, court costs and fines and more.

Even if you don’t get caught driving, your local DMV could contact you and require you to pay a civil fine in order to maintain your vehicle’s license plate. If you want to avoid any types of legal actions, ensuring that your car insurance does not lapse is very important.

It’s Expensive

Even if you don’t end up getting in legal trouble over your car insurance lapse, you could end up spending a lot of money on it. For example, if your payment was supposed to come out of your bank account but if the money was not available, you could end up having to pay overdraft fees and returned payment fees to your bank and your car insurance provider. You may also have to pay a hefty amount to get your insurance company to reinstate your coverage.

Your Insurance Company Might Not Accept You

Believe it or not, if your car insurance lapses, you may not be able to just pay to get your coverage added back on. In some cases, car insurance companies will not accept you again after you have lapsed in coverage. Then, you have to go through the hassle of finding a new company. Car Insurance

You Won’t Be Covered

Perhaps the biggest problem of all when it comes to letting your auto insurance policy expire is the fact that you won’t be covered in the event that you get into a car accident or if something happens to your car.

As you can see, it’s never a good idea to let your auto insurance policy lapse. Therefore, it’s important to stay on top of your payments so that you can prevent this from happening.