- June 19, 2023
- Posted by: admin
- Category: Auto Insurance
Just like missing out on credit card payments reduces your credit score and your chances of getting a new loan or credit line, missing out on insurance premium payments reduces your chances of getting a new policy. When you fail to pay your insurance premium, your policy may lapse after some time.
In this blog, let’s take a look at what auto insurance coverage lapse is and how it affects your insurance rates.
What is Auto Insurance Coverage Lapse?
Your auto insurance policy lapses if you don’t get your insurance policy renewed at the end of the contract or fail to make insurance premium payments to your insurance provider.
The insurance companies send their clients regular reminders to renew or pay their premium amount within the due date to keep their insurance policy in effect.
How Does Auto Insurance Lapse Affect Your Premium Rates?
A lapse in auto insurance policy can be a big deal. Firstly, driving without auto insurance is neither safe nor legal in most US states. If you drive a car, it’s mandatory for you to have auto insurance.
Secondly, the cost of a lapsed auto insurance policy is very high. If your insurance policy has lapsed in the past and you’ve gone for a new policy, you’ll receive quotes with a significantly higher premium than you previously were paying. Moreover, the insurance rate goes up if the amount of time your policy was lapsed. The more you wait before getting a new insurance policy, the more premiums you’ll have to pay.
In some cases, you face difficulty in getting an insurance policy at all.
What to Do if Your Insurance Policy Lapses
If your auto insurance policy has lapsed due to any reason, make sure you get a new policy immediately. If you’re looking for a trusted place to get your auto insurance policy, Western Mass Auto Insurance can help you!
We are a trusted insurance provider in Springfield and offer auto insurance policies according to affordable premiums. Furthermore, we also offer commercial auto insurance, home insurance, renter’s insurance, life insurance, and more.
Reach out to us now for further details.