You might not realize that car insurance agencies view lapses in coverage in a negative way, but this is true. When a person has a lapse in coverage, an insurance company will typically consider this person a high-risk driver, and this will automatically cause the person to pay higher rates on their auto insurance coverage. If you have a lapse in your coverage but not need insurance, here are a few things you should know.

Why insurance companies view this is a risk

There is a whole list of things insurance companies view as risks when it comes to evaluating drivers, and a lapse in coverage is just one of the many things found on this list. There can be a lot of reasons people have lapses in coverage, but in many cases, it is because the person's insurance company canceled the person's policy. A lapse can also occur if a person loses his or her license or if a person no longer has the need to drive. In any case, a lapse is never viewed as a positive event in a person's life, and it will usually result in the person paying higher rates for the coverage they need.

Part of the reason for this is that an insurance company will have no record of the person's claims for insurance, and this can leave an insurance company wondering what type of driver this person is.

How you can get coverage after a lapse occurs

If you are in this position and need insurance, you should contact several companies to get quotes for coverage. As you do this, you may find that the rates are higher than you expected, but there might be some ways you can reduce them. One option is to purchase less coverage for your car. For example, you could stick with buying the minimum coverage only for your vehicle. A second option is to raise the deductible on the policy. Raising a deductible is one of the easiest ways to get a discount on your policy.

Additionally, you might qualify for a discount if you complete a driver's education or defensive driving course. Before you take this step, ask the insurance company if this would help you save money on your policy, and you can also ask the agent what other options you have for getting a lower rate on your insurance coverage. Contact an insurance company to learn more about this.