A lapse in coverage with auto insurance refers to a time period in which you do not have coverage, but you had coverage at some point in the past. A lapse in coverage could be as short as a few hours or it could be for years, but any period in which you do not have insurance coverage is considered a lapse. If you need coverage after a lapse, here are a few things to know.
The reason for the lapse
First of all, it is important for you to know why a lapse occurred, as this is something an insurance company will want to know before agreeing to give you coverage. Certain lapses might not be as bad as others, but all lapses are usually considered a negative thing. If, for example, you always paid your bills late and your insurance company canceled you for lack of payment, this would not be a good reason for a lapse in coverage. On the other hand, if your lapse occurred because you left the country for an entire year, this would make more sense why you would have allowed the policy to lapse.
Why it may be harder to get coverage
The problem with a lapse in coverage is the way insurance companies view this. Insurance companies see lapses as risks, and this typically causes them to place a person in a high-risk auto insurance category. Because of this, buying a policy after a lapse will often result in paying higher rates for your coverage. The best thing to do is avoid lapses from this point on, as this will help you get lower rates eventually.
What to expect when finding an insurance company
To find an insurance policy after a lapse, you may need to call around to talk to several agents. Additionally, you may want to offer to prepay your entire six-months of coverage upfront. This would reduce the risks the insurance company has with you and they may agree to cover you if you offer to do this. You may also want to choose a higher deductible and less coverage than you would normally get, as doing these things would result in saving some money on your insurance costs.
If you experienced a lapse in coverage for any reason, you can still get insurance; it just might cost a little more. You require high-risk insurance. To get a quote for coverage today, contact any auto insurance company to request one.