Compare-autoinsurance.org has launched a new blog post that shows how drivers should deal with auto insurance lapses.
For more information and free car insurance quotes online, visit https://compare-autoinsurance.org/how-drivers-should-handle-a-car-insurance-lapse/
An auto insurance policy can expire for several reasons. Unpaid premiums, policy cancellations due to excessive traffic tickets or accidents and the like can lead to auto insurance lapse. Driving with expired insurance is never a good idea. In some states, drivers can face jail time if caught driving with expired insurance. Insurance companies consider auto insurance lapse to occur if there has been no auto insurance coverage for 30-60 days. Additionally, drivers whose insurance has expired will be labeled as high risk and will pay more for their insurance when they finally get one.
To better understand an auto insurance lapse and its effects, consider the following:
What to do with a car insurance breach? If car insurance expires, drivers should contact their providers immediately. For best results, they should speak with a representative before the policy ends. To reduce the cost of premiums and make the policy more affordable, the insurance representative may suggest that policyholders take advantage of discounts or increase their deductible. After the auto insurance expires, the policyholder can expect to pay more for the insurance. If the policy was renewed within a month, the insured can expect to pay 9% more on their premiums. If the default lasted up to 60 days, the insured can expect to pay 48% more on their insurance. However, if the policy has been expired for more than 60 days, the insurer will likely refuse to renew the policy. In some states, drivers who have become disqualified from auto insurance will be required to pay license and registration reinstatement fees. In other states, drivers will need to complete an SR-22 form.
- What can drivers do if they are not using their car for an extended period? In most cases, these drivers can go to their providers and request the suspension of their insurance for a fixed period. However, in some states drivers will need to obtain an affidavit from the state DMV. A suspension of insurance is not considered a forfeiture.
- Insurer car insurance grace period. Insureds must receive notice before an insurance company cancels their policy. Grace periods generally vary between 10 and 20 days to allow policyholders to pay their bills and avoid cancellation of the policy. If the duration of the grace period is very short, providers will usually reinstate the policy.
- What happens if the driver has an accident with expired insurance? If the driver lives in an at-fault state and was not at-fault in the accident, the driver with an expired policy can contact the at-fault driver’s provider and file a claim. If the driver lives in a no-fault state, where the driver’s insurance is responsible for covering their own injuries and any damage to the vehicle, they are not covered if the insurance has expired. In addition, the driver is not covered in a state of fault if he was the faulty driver.
For more information, money-saving tips, and free auto insurance quotes, visit https://compare-autoinsurance.org/
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