Why Allowing Car Insurance To Lapse Can Be A Big Problem

It is important for all drivers to make sure that they have car insurance coverage at all times. Car insurance companies are very serious and allowing a policy to lapse even for a month can have serious financial consequences. For example, if you have not had any valid car insurance coverage for thirty days then you will be listed as being someone who has no prior auto insurance coverage. Once this happens, drivers will really feel it in their wallets.
There are special rules for people who had their car insurance policy lapse because of unforeseen circumstances such as people who were in the hospital for a while, active military members, and those that are disabled. It is crucial to try and get car insurance coverage as soon as possible because the longer a policy lapses, the worse it is for the driver.
Usually, drivers are given very high insurance rates for six months to one year after a lapse has occurred and a new policy has been set up in its place. One great way to try to save money is to visit car insurance agents in person and ask for help to get a new car insurance policy or renew the existing one.
Shopping online for cheap car insurance quotes while uninsured can cause a problem. This is because quoted rates may become sky high as soon as the checking of the driving record and prior car insurance is looked at.
By speaking to a car insurance agent directly, drivers can explore their financial options so that they can choose an insurance policy that will accommodate their budget and resolve the matter as quickly as possible. In many states, people who allow their car insurance policies to lapse face surcharges, fines, and even points on their driver’s license. A few states even give police officers the authority to tow cars immediately if they are found to be uninsured.
Because of tough economic times, many drivers risk breaking the law because they feel as though the coverage is not a necessary monthly expense because the coverage only is valuable when used after an accident. Some states such as California have financial assistance programs for drivers who have found themselves unable to afford their car insurance premiums.
This can be a huge help and it is based on the household size and the income. It is crucial for drivers to explore all of their options before they make the drastic decision to stop paying their insurance premiums on time. It is more cost effective to downgrade an insurance policy rather than break the law and end up paying exorbitant fines and premium rates because of a situation that could have been avoided.