How to Get Auto Insurance After it Has Lapsed
The minute you purchase a vehicle and register it for use on public roads, you must have auto insurance coverage in place. Not having insurance is a violation of the law and it also unnecessarily poses a financial risk to you or anyone who may be involved in an accident with you. If you had inadvertently allowed your auto coverage to lapse, it is possible to get replacement coverage. It will cost more, but at least you will be in compliance with state law.
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Instructions
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Determine whether the coverage lapsed or was cancelled. There is a big difference between allowing a policy to lapse while driving around without insurance and canceling an insurance policy because the coverage is no longer needed. If you turned your plates in to the Department of Motor Vehicles and cancelled coverage, you will not be penalized for having a gap in coverage. Allowing the policy to lapse, however, when your car is still registered for use on public roads, is against the law.
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Shop around for a new auto insurance carrier. If you allowed your policy to lapse, most standard insurance companies may not want to insure you. You may be forced to secure auto insurance company through the Assigned Risk Pool in your state. The Assigned Risk Pool is a collection of insurance companies that charge a higher rate for hard to insurance drivers. Visit your state's Department of Insurance for the Assigned Risk carriers in your state.
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Employ honesty on your insurance application. Don't get tempted to make misstatements on your auto insurance application to imply that your coverage was cancelled instead of lapsed. Not telling the truth on an insurance application is grounds for voiding coverage. If a policy voids your coverage, its as if the policy never existed. This is especially dangerous if the insurance company has already paid a claim. You'll have to reimburse the company for the claim.
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Dig deeper in to your pockets to pay your auto premiums. You will be penalized for having a lapse in auto insurance coverage in the form of having to pay higher premiums. Insurance underwriters consider lapsed coverage as risky behavior and will charge premiums accordingly.
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Take a safe driver class. Taking a safe driver class will help to offset some of the financial sting of having a lapse in auto coverage. It won't offset the penalty for a lapse in coverage, but you will earn premium credits for taking the class.
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Tips & Warnings
If you can afford it, pay your annual premium up front. It no only avoids the premium finance charge, it also reassures the insurance company that you won't allow your policy to lapse mid term.
