What Happens if Your Auto Insurance Lapses?

Auto insurance plays a pivotal role in your financial security. Any time you get behind the wheel, something could go wrong, meaning that even brief or isolated interruptions in your coverage could have dire ramifications. It’s important to understand what to do if your auto insurance lapses and how you can rectify the situation.

What Is a Coverage Lapse?

When your auto insurance lapses, there is a period when you and your vehicle aren’t insured. Given the omnipresent dangers of the road and various relevant threats even for parked vehicles, these situations could present significant financial and legal concerns.

What Are the Consequences of Lapses?

Getting into an accident while uninsured would mean paying for repairs and liabilities out of pocket, potentially draining your savings and threatening your assets. Furthermore, you’d likely be in violation of insurance-related laws and could face fines and license suspension. Auto insurance lapses could also impose long-term financial consequences, as carriers may observe the interruption in coverage and consider you to be riskier.

How to Avoid Coverage Interruptions?

A diligent and hands-on approach to managing your auto insurance and responsible behavior behind the wheel can play key roles in limiting your chances of a coverage lapse. Consider the following strategies to ensure you maintain access to auto insurance:

• Renew your policy on time.

• If you’re getting a new policy, make sure it becomes active before your current coverage expires.

• Keep a clean driving record to limit the risk of nonrenewal or cancellation.

• Keep up with your premiums.

We’re Here to Help

At the Samco Agency in Wood Dale, Illinois, our team can help you acquire and maintain suitable auto insurance and avoid coverage lapses. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.