What Is A Lapse in coverage? Florida Auto Insurance
Lapse in coverage refers to a point of time when the policy is terminated or cancelled due to the failure of the payment of a premium to the insurer. It also occurs when the policy contract signed between the policyholder and the insurance company goes void due to some reasons.
Effects of lapse in coverage:
After a lapse in coverage, it is essential that you do something about it immediately as majority of the states makes it mandatory for the insurers to report to the DMV if there is any lapse in the coverage. However, your car insurance company may reinstate the coverage if only a couple of days have passed since the lapse. However, there is no obligation for the company to do so.
You will not have to pay huge penalties in case of short lapse in coverage. However, it may vary from company to company. You will have to pay huge penalty if there is a lapse in coverage for a period of more than six months. Furthermore, you will also be considered as a high-risk customer, which in turn will increase your car insurance premium rates.
How to get insurance if there is a lapse in coverage?
Whenever there is a lapse in coverage, you drive with huge amount of liability. This is because with a lapse in coverage your car is not covered under insurance. In such as scenario you need to take the advantage of full policy prepayment or take note of the due dates of the premium of your car insurance. The main essence behind prepaying the policy in full is several car insurance companies provide you attractive discounts if you pay for the full policy all at once.
The most important thing in getting an effective car insurance policy is to gain as much information as you can about car insurance. To get the best car insurance you need to shop around and look for best quotes from the numerous quotes offered by various car insurance companies.
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