The basic principle of car insurance is to never let your car insurance lapse, even for a small time. This article enlightens you on common reasons why auto insurance policies lapse and why you should stay away from it, if possible.
Many things can occur in life to create a scenario where you might think you don’t need motor insurance for a period of time. However, one of the principles of the insurance industry is to never let your car insurance lapse, even for a small time. Learn common reasons why auto insurance policies lapse and why you should stay away from it.
Common reasons that causes your car insurance to lapse
- You forgot to pay your bill
- You don’t have the money to pay your bill
- you sold your car
Avoid a lapse if Possible
Some of the reasons listed above might seem like valid reasons for canceling your car insurance, but the penalties for this can be severe. It can be particularly risky if the reason for lapse is one out of the first 2. If you meet with an accident at a time when your car insurance has lapsed, a lot of serious issues can arise. If you no longer have your car or choose not to drive it for some time you will still suffer penalties.
- Have a valid car insurance policy is mandated by law
- You can be held legally responsible in an accident
- Substantial penalties if you’re caught driving without insurance
- You’re considered to be high-risk the next time you go to buy insurance, which can almost double your payments
Seek ways to avoid a lapse, whenever possible. Car insurance should be at the topmost of your priority list and you can, check car insurance online to save on your policy.
Other things to remember:
When you are shopping for car insurance, insurance companies mostly look into the last 1 year of your insurance history to see if you have maintained continuous coverage.
If you have never let your car insurance lapse, you might qualify for a discount with certain auto insurance companies.
It is strongly recommended that you never let your car insurance lapse, even if you are taking your car off the road for some time. So, if your insurance has lapsed, and you are looking to re-insure your car, you can check for lowest premium from leading insurers by comparing vehicle insurance online in seconds.