When intentionally or unintentionally auto insurance lapses, you’ll be designated as an illegal driver automatically. If policyholder fails to show proof of auto insurance policy, when stopped by the law, carries heavy repercussions. Along with certain amount of fine, your vehicle registration or driver’s license may get suspended. In fact, the penalties will be more than fine in case you’re involved in a car accident. In some cases, you may need to face possible repercussions with your auto insurance company in the form of higher insurance rates.
Meaning of Lapsed Car InsuranceThe meaning of term ‘lapsed insurance’ refers to no longer being covered by your previous car insurance company. The lapse could occur because of car cancellation for a specific reason, not submitting your premium statement or not renewing your existing coverage. Your insurance coverage also dropped as am effect of insurance lapse.
What to do if Auto Insurance Lapses
If car insurance lapses, never think that you’ll protect yourself by driving more cautiously. Those who want to avoid legal repercussions, insured has to stop driving or just reinstate your auto insurance immediately.
Tricks to Reinstate Lapsed Car Insurance
Your insurance company guides you how to reinstate your insurance. In case insurance has been lapsed for a short duration like for a few days and a customer has a good relationship with insurer, then there are more chances that your insurance company will work with you for instant reinstatement. So, first be a good customer by paying insurance documents on time and by having clean driving history.
It becomes harder for reinstatement if you wait too long. Apart from this, policyholder may face increased penalties. You need to search for new car insurance company in India when a car insurance policy has lapsed because of non-renewal or cancellation.