How to Get Auto Insurance Again After Your Policy Lapsed.
Thomas Atkinson’s only vehicle was totaled after a tree fell on it. Unfortunately, his policy did not include comprehensive coverage, which could have covered non-collision damages and possibly paid for the replacement for his vehicle. To make things worse, he let his policy lapse due to the financial constraints he was experiencing.
The Ramifications of Letting Your Car Insurance Lapse
When you let your policy lapse for an extended period of time (i.e., several months or years), your car insurance rates will mostly skyrocket, sometimes more than twice your usual premium. Furthermore, your previous insurer may decline to renew your policy and so your only option is high-risk driver insurance, which is substantially more expensive than a standard policy.
Aside from saying goodbye to cheap insurance quotes, a prolonged lapse in your policy while you still owe money on your vehicle means the lender will have to purchase forced-placed insurance to cover the car and financing. Failure to pay for this considerably expensive policy means your vehicle can be repossessed.
Moreover, forced-placed insurance does not include property damage or even the state-required liability coverage. So basically, driving with this type of policy means breaking the law.
If you were caught driving without the compulsory insurance coverage in MA, you will be slapped with hefty fines and your vehicle will likely be towed.
Moreover, if you get into an accident while uninsured, you will have to pay for the damages out of pocket; things are much worse when the accident is your fault. Not only will you have to pay for the other driver’s property damage and medical bills, should he or any of his passengers have experienced bodily injuries, you will also have to pay them the cost of litigation should they decide to sue you.
How to Get Auto Insurance Again After Your Lapsed Policy
The first thing you should do is call your independent insurance agent or insurer and ask for your policy to be reinstated. If you forgot to pay your bill and the lapse is just a few days old, you may still get to enjoy the same insurance rate.
However, things could go south if you have previously missed payments and/or you have filed multiple claims. In this scenario, your insurer might not reinstate your policy, which will force you to switch to a different insurance provider that will probably deny you discounted rates or any perks since you’re now considered a high-risk driver.
Low Cost Car Insurance Remains Possible After Your Lapsed Policy
Finding cheap auto insurance quotes remain possible even after a prolonged lapse. If you have a legitimate reason—e.g. you move out of the country for a long trip or military deployment—some auto insurance companies will have no qualms about reinstating your policy or approving your application.
Another tried-and-tested way to find an affordable policy is to compare car insurance rates from at least 3-4 companies. Take note that the growing competition among online car insurance insurers create an auspicious buyer’s market.
In the event that you have no other choice but to purchase high-risk coverage because no company will offer you a standard policy or reasonable rates, it doesn’t mean that you’re stuck with high premiums forever. A good rule of thumb is to pay your bills on time and avoid accidents, traffic violations and infractions for 6-12 months.
If you maintain a clean record for this period, ask your insurer to recalculate your premium and possibly consider giving you a discounted rate. Should they decline, you always have the option to shop around.
A lapsed policy happens to the best of us. Your recourse is to request that they reinstate your policy and, if this is denied, to purchase a new policy with the intention of replacing it within a year. When you need to replace your policy, most carriers will require payment in full, however, you can always finance your policy through a finance company at reasonable rates. We are happy to help you replace your policy with one that has more manageable premium payments. Send us an email or give a call and we’ll help you out.
Contact us today. Explain your specific needs to us and we can give you customized insurance rates and coverage, thus allowing you to save hundreds if not thousands of dollars every year.