What Happens if My Car Insurance Lapses?

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People are unemployed and having a hard time paying bills. What about car insurance?

COSTA MESA, Calif. - eTradeWire -- Mistakes happen and so do lapses in car insurance policies. Just what is a lapse in insurance? A lapse in car insurance occurs any time you have a car registered in your name but you do not have car insurance coverage. How did this happen? Your policy may have run out or it was cancelled because you missed payments.

Having a lapse in car insurance is a pretty serious situation since car insurance is necessary for driving a car in the United States. A lapse in car insurance may also cause your insurance rate to spike.

What Happens if Car Insurance Lapses?

If your auto policy should lapse your auto insurance company is not obligated to cover any auto claims. This means you will have to pay out of your own pockets for accidents or damage to you, your car and others and other property. This includes medical bills for yourself and the other driver, damage to the other vehicle and any repairs for your own car.

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How Long Can Your Car Insurance Lapse?

It depends on your auto insurance company and how quickly they would move to cancel the policy altogether. After that, your lapse in insurance will continue until you apply for, are approved, and pay for a new policy.

What Is a Car Insurance Lapse Grace Period?

Some auto insurance policies come with grace periods of three days and other companies give you up to 30 days

For the rest of the article, visit here (https://smartfinancial.com/what-happens-if-my-car-insurance-lapses).

Contact
Fran Majidi
***@smartfinancial.com


Source: SmartFinancial
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Filed Under: Insurance

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