What Happens If Your Auto Insurance Lapses?
- 21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! First off, it becomes illegal for you to drive in most States. The process to reinstate the policy is usually fairly straightforward, you show proof of insurability (you didn't get into an accident, get DUI'd, or ticketed in the interim, have a major health issue, etc), and pay the back owed amount. If that is an issue, sometimes the insurer will be willing to prorate the back owed amount over the new premium, until it is repaid. Sometimes, it is easier to just get a policy with a new company, but expect to get questioned as to why your policy was allowed to lapse, and pay a higher premium. I hope that helps, thanks for asking!Answered on December 3, 2014flag this answer
- 14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482The obvious is that you have no more protection and that can also make it illegal to drive your car or any other for that matter. Most if not all states require that you aintain continuous car insurance as a condition of maintaining the registration on your car. Your lien holder or leasing company also requires that.Answered on December 4, 2014flag this answer
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