You know that it’s important to pay your bills on time. But we know that sometimes life doesn’t go exactly as planned. So what happens if you miss a payment on your auto insurance? You may find that your insurance policy lapses due to non-payment. That means that if you don’t pay your premium, you won’t be insured for long.
Most companies will give you some leeway if you are late on an insurance payment, but it won’t be long before you lose your coverage. If your policy lapses, it’s imperative that you address the situation immediately. Even if you aren’t currently driving your car, the law requires all vehicles to be insured. And you won’t get away with having no insurance. Insurance companies are required to notify the DMV of all lapsed insurance policies.
If you need to reinstate your insurance, you’ll want to contact your provider as soon as possible. Really, the sooner the better. The longer you wait, the harder it might be. If you act quickly your chances are better of getting the problem taken care of. The relationship you have with your provider may affect the ease with which they reinstate your policy. If you have a good driving record and a long history of on-time payment, your insurance company may take it easy on you.
If your policy does lapse and you continue to drive your vehicle, you might be putting yourself at risk for some very serious consequences. Driving without insurance could result in heavy fines and the revocation of your driver’s license.
It’s probably clear by now that you don’t ever want to let your insurance lapse due to non-payment, but if that’s the situation you find yourself in, make sure you take the proper steps to get it all straightened out before it costs you too much.