When money is tight, everyone tries to find ways to save money. Another option is to let your car insurance lapse for a few days. You might think that this is a way to save money on your car insurance, but some risks are associated with doing this. For example, insurance companies typically charge higher rates for drivers who have let their insurance lapse so that you could pay more in the long run. So ask for auto insurance quote comparisons and find the best deal before letting your insurance lapse.
We'll go through several reasons why it's critical to maintain your automobile insurance policy and avoid a break in coverage.
Risks of Letting Your Auto Insurance Lapse
Legal Requirements
All states require auto insurance. This is the coverage that will pay for damages if you're in an accident. If you don't have liability coverage on your car and it's been parked for more than a year, you may violate the law even if the vehicle isn't being driven. If you operate a car and cause an accident without insurance, you'll be charged and subjected to significant penalties.
Financial Consequences
If you are caught driving without insurance and are in an accident, you will be held fully responsible for any damages. If you cause $50,000 in damage, you will have to pay for it out of your pocket. If you can't afford to do this, the other driver could sue you and put a lien on your property.
Insurance Rate Increases
If you let your insurance lapse and try to get coverage again, you will be considered a high-risk driver. This means that you'll have to pay much higher premiums than you would if you had kept your coverage in place. In some cases, your rates could increase by 50%.
Driving Record Impact
If you are involved in an accident and determined that you were at fault, your insurance company will likely raise your rates. If you let your policy lapse, the accident will stay on your record for up to three years. This could result in even higher premiums when you try to get coverage again. In addition, your automobile may be impounded or your license temporarily suspended in some circumstances.
How to Avoid a Lapse in Coverage
The advantages of keeping your auto insurance current should now be evident to you. Of course, your ultimate goal should be to avoid a lapse in coverage at all costs. But sometimes, things happen, and you may find yourself without insurance for a short period. If this happens, there are a few things you can do to minimize the impact:
Practice Responsibility
The common reasons for car insurance cancellations are non-payment and driving infractions. As a vehicle owner, you must pay your insurance premium on time. However, you are also responsible for operating your vehicle safely; having too many citations or accidents on your record might result in your insurance policy being canceled, which will result in a coverage gap. A homeowner's insurance quote comparison can help you budget and avoid such lapses.
In Conclusion
A lapse in your car insurance coverage can have serious consequences. If you let your policy lapse, you could be facing higher premiums, a negative impact on your driving record, and even legal penalties. So if you find yourself without insurance, take steps to get coverage as soon as possible to avoid these consequences. And remember, the best way to avoid a lapse in coverage is to pay your premiums on time and practice safe driving.
TX Insurance Quotes can help you find the best rates on car insurance in Texas and cities like Corpus Christi, EI Paso, Beaumont, Brownsville, and Harlingen. We have a wide network of insurers that we work with to help you find the best coverage at the most affordable rates. So call us today for a free auto insurance quote.