Why Avoid Car Insurance Lapses

Your car insurance history is a significant factor used by all insurance companies when determining your rates.  Having an insurance lapse on your records will bring really unpleasant consequences and many insurance companies will instantly ask for more money or even consider dropping you.  Find out why avoid car insurance lapses and driving without insurance. Plus, if money is the only concern, get free quote on car insurance from our website and find better offers.

Forgetting to pay the bill or not having sufficient money to pay the bill are the typical two most common reasons why drivers get with a car insurance lapse.  But these two scenarios also imply you may still be driving your vehicle. If that is the case, extremely serious problems can come up if you get involved in an accident.  You may be considered a “high-risk driver” if you’ve let your coverage lapse or if you were driving and/or in accident while uninsured. If you get the unpleasant “high-risk” label, you will likely find that new car insurance rates will be significantly more expensive than if you had continued your former policy.

To make things worse, you may even be denied coverage by standard providers and even non-standard ones, at which point you would need to obtain insurance through your state’s automobile insurance plan, which can cost a whole lot more.

Also, if you had some discounts before the policy expired, they will no longer be available if you get a gap, then decide to re-insure.  You will also lose the chance of getting several discounts that require continuous insuring. For example, loyalty discount and no-claims discount.  These two bonuses require to be insured for a period of time, at least 3 years. If you have a gap in the second year, all your build-up will become useless..

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