Auto insurance is crucial for all drivers across the United States. On that account, it's essential to pay your monthly premiums to enjoy the services. Failure to do so will cause a lapse in your insurance.
Besides that, canceling your policy before time matures results in coverage lapse. In that regard, insurers will flag you as a high-risk driver. Worse still, the insurance company will increase your payment rates. The good news is that you can remedy the situation using the strategies below.
Premium Rates Increment after Insurance Lapse
The premium rates that you pay for your car will increase depending on your insurer. For instance, a lapse below 30 days attracts an 8% rise penalty. If the lapse in coverage goes above 30 days, the payment will skyrocket by 35%. The primary reason why premiums surge is because the risky behavior can lead to an automobile accident.
Taking longer to pay insurance costs culminates in hefty charges. Besides that, other factors will determine your insurance rates as follows:
- Location
- Driving history
- Age
What to Do to Rectify a Lapse in Coverage
For starters, you should contact your insurer if the lapse is barely a few days old. The company might impose a light penalty. In case you need to purchase a new policy, shop around for affordable options. Also, hurry up the process because driving around without car insurance is against the law.
Different states have varied ways to punish those who drive uninsured. Therefore, you need to get back to your insurance policy to avoid the following consequences:
- Jail time
- Losing your auto coverage
- Authorities impounding your car
- Pricier penalties
Within the first few months, you'll need to stick to your insurance company to reflect responsibility on your part. After that, you can switch to another insurer and experience pocket-friendly premiums.
It's critical to pay the fine or penalty as soon as possible. When you wait a little bit longer, charges increase every passing month. Renew your policy and cater to the costs to get back on the road.
Tips to Get a Competitive Policy
A lapse in coverage isn't the end of the road to getting a budget-friendly premium rate. Here are practical tips to get a favorable policy that meets your needs and expectations:
Get Discounts
Ask your insurer if you can pay the surcharges upfront to get discounts. This will help you balance out the high premium rates.
Look for a Customized High-Risk Driver Insurer
Thankfully, not all companies come with hefty rates after a lapse in coverage. You can find a personalized insurer that specializes in high-risk driver policies. You might save considerably on costs by getting an affordable policy.
Always Check Your Status
It's no secret that insurers won't update you about your coverage status unless you inquire first. In that regard, take it upon yourself to ask the insurance company to notify you regularly. You'll know whether you're still high-risk or low-risk.
For more information, contact a local auto insurance provider.
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