What If I Have Let My Auto Insurance Lapse?
If you let your auto insurance lapse you are leaving yourself open to many problems. First, and foremost, if an accident happens during that period you are not covered for any damage done to you or that you may have caused. This can leave you liable for damages and the opposing party sill sue you personally. Second, you are breaking the law. You will face fines and possible jail for driving while uninsured. Finally, in some states, if you let your insurance lapse the insurance company will notify the state and your drivers license will be suspended.
Will I Have To Pay More For My New Policy If I Let My Old One Lapse?
One of the main factors used to determine auto insurance rates is if you are currently insured. If your policy expired less than 30 days before you purchase a new one, you still will qualify for good rates. If the auto insurance policy expired more than 30 days ago, for any reason, you will be considered high risk and pay much higher premiums. This applies even if you just purchased your first car or have not had a car in the recent past. Insurance companies feel that non insured people present to high of a risk to offer good premiums. However, after your first six months with the program you should see a reduction in your rates.
Will My Auto Insurance Carrier Notify My Old Provider If There Was A Lapse?
If you enter into a new auto insurance contract after 30 days of being non-insured, the new company will not notify the old one of the new policy. After the thirty day mark you are considered a new policy holder without any attachments. If you establish a new policy within 30 days they will notify the previous carrier to avoid any issues with your state.
Related posts:
- How Do I Get Car Insurance After A Lapse In Coverage?
- How Do I Get Auto Insurance After A Lapse In Coverage?
- How Can I Get Auto Insurance After A Lapse In Coverage?
- Should I Let My Auto Insurance Lapse?
- Is There Cheap High Risk Auto Insurance?
