What If My Car Insurance Lapses?

car-insurance-lapsesA lapse in your car insurance coverage is something that you should avoid at all costs. The results can have a powerful impact on your credit history as well as your legal right to drive and even your ability to obtain coverage in the future. Everyone makes mistakes however, or allows an odd bill or notice to slip through the cracks. If you realize that you have allowed your insurance to lapse you should contact your insurance company immediately to try and resolve the problem.

If you do not realize this in time, your insurance company will notify the proper agencies that you do not have insurance coverage. Your non-payment will appear in your credit history and lower your credit score. Once government agencies have been notified of your lapse, you will receive a notice requiring you to pay a lapse fee and obtain the minimum legal coverage. You will be required to show proof of insurance to the proper authorities when you have done so. Failure to comply can result in the suspension of your license or registration. It gets worse; if you are caught driving without insurance you may be subject to fines and vehicle impoundment.

If you are involved in an accident while you are not insured you may be responsible for the damages to one or both vehicles depending on whether you are at fault. In states like Louisiana with no pay, no play laws, you cannot collect on bodily injury or property damage claims if you are uninsured. Without insurance, you are completely unprotected. If your car insurance lapses, do your best to reinstate it as soon as possible.

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