When insurers see that lapse, it identifies you as a risk, which makes you costlier to insure. Your car insurance company is going to want to pass that increased price back to you. You may even be at risk of losing your license if you continue to drive while uninsured.

What does it mean for car insurance to lapse?

A car insurance policy lapse is a period of time when a registered car does not have the legal minimum amounts of car insurance coverage. A lapse in coverage usually means you need to reinstate with the company you were previously with, if possible, or find a new insurance company.

What happens if there is a gap in car insurance?

A gap in car insurance may be seen as a higher risk to insure than someone who pays their premiums on time, and insurers offset that risk by charging a bit more for your policy. In addition, some insurers don’t even sell insurance to people who don’t have an active policy.

Does insurance lapse affect credit?

The short answer is no. There is no direct affect between car insurance and your credit, paying your insurance bill late or not at all could lead to debt collection reports. Debt collection reports do appear on your credit report (often for 7-10 years) and can be read by future lenders.

What happens if I miss my car insurance renewal date?

Even if you have managed to miss out on the due date for renewal, you can contact your insurance agent and take things forward. Your agent will be in a better position to help you out in such cases. Your agent could reinstate the insurance policy and save you from paying any kind of penalty.

What happens when your auto insurance policy lapses?

The auto insurance industry considers the lapse period to be from the time your coverage stops until: You get new car insurance coverage (or your coverage is reinstated). You surrender your vehicle plates. Your vehicle registration expires.

What happens if my car insurance lapses in New Hampshire?

A lapse in coverage usually means you need to reinstate with the company you were previously with, if possible, or find a new insurance company. But remember, driving without insurance is illegal, unless you live in New Hampshire. How can you avoid a policy lapse? If possible, it’s best to avoid a coverage lapse in the first place.

Can a car insurance policy lapse in Virginia?

In Virginia, for instance, an auto insurer may legally cancel your policy for non-payment if the payment is even one day late. If you receive a notice saying you haven’t paid your premium, don’t just sit there and wonder, “How long can my car insurance lapse?”

How long do insurance companies have to notify you of a lapse?

Insurance companies are required by state law to provide notice before cancelling your policy. Depending on the state, you’ll usually have between 10 and 20 days. Your company will notify you by mail or email before cancelling your coverage.