4 Reasons You Shouldn't Let Your Car Insurance Lapse

Insurance Blog

An insurance lapse is when you allow your auto insurance coverage to expire or you avoid payments, thus guaranteeing that your car insurance company will cancel your policy. The lapse describes the amount of time that you are without coverage. This should be avoided at all costs, and here are four major reasons why:

  1. Auto Insurance Is Required by Law: If you are caught driving without auto insurance coverage, then you can be severely penalized. You could either get your license taken away for a certain period of time or end up having to pay a fine that could be more than just buying a new car insurance policy. 
  2. Increased Premiums: If car insurance companies see a lapse in coverage within the last twelve months, it suggests to them that you are probably an unstable customer, which means that they are going to charge you a higher premium. This is why it is important to always have continuous coverage. 
  3. You Receive Discounts: For those who have never had a lapse in car insurance coverage, they are usually eligible for a discount from car insurance companies. If you know that you have never had a lapse in coverage, let your car insurance company know so that they can do a full history check and give you the discount if they offer it. To guarantee that you are always eligible for this discount, you should also consider paying your premium in full and setting up auto renewal for your policy, which can also give you further discounts through your car insurance company to save you even more.
  4. Financial Risks: If you allow yourself to have a lapse in auto insurance coverage, you are putting yourself at great financial risk. Not only will you pay higher premiums in the future and possibly fines for being caught without insurance, but you will also be paying out of pocket for damages and medical expenses in the case of an accident, even if you aren't at fault. If you aren't at fault for the accident, but you do not have auto insurance, your ability to make a claim against the person who was actually at fault can be foiled. 

By knowing the main reasons to avoid a lapse in auto insurance coverage, you can better understand the importance of always being sure that you make payments on time and renew your policy once it expires. You also want to be sure that if you plan on switching insurance policies, you let your current insurance company know so they can cancel the policy the day that your new one starts up so that you can continuously have coverage. 

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4 June 2015

Feeling Secure about the Future

Do you constantly fret about your future? Perhaps, you worry about what might happen to your significant other and kids if you suddenly passed away. If you can relate to this scenario, obtaining a life insurance policy might help you get the peace of mind you desire. Depending on your unique situation, you might benefit from acquiring a term or whole life policy. A trusted insurance agent can listen to your needs and help you figure out what type of policy will be best for you. On this blog, I hope you will discover the numerous reasons you should secure a life insurance policy sooner rather than later. Enjoy!