Letting your auto insurance coverage lap is a risky situation. If you don’t make your payments on time, you could face cancellation for non-payment. Most states have laws that make auto insurance mandatory. This means that you usually cannot register your vehicle without proof of auto insurance that meets the state’s requirements for auto insurance coverage. Failure to maintain insurance on your vehicle can result in the loss of your driver’s license in some states. So, a lapse in coverage could lead to many problems for you as a driver.
The Grace Period and Lapsed Insurance Coverage
Just like any other insurance coverage you might have, car insurance policies have an expiration date that extends beyond and this keeps the coverage in effect. Your insurance company will send you renewal notices to tell you the date that your insurance premium is due in order to prevent your policy being cancelled. This notice will include what is called a grace period. This grace period extends beyond the due date for your premium, and it gives you a specific timeframe in which to pay your premium – this is additional time – and it allows you to still be covered in the event you are in an accident. Regardless of whether you fail to remit your policy premiums on time during the regular term of your policy or when it is time to renew, you will face cancellation of your policy.
What Happens After Your Grace Period
If your policy is cancelled or coverage lapses, you will not be protected from the risks you face with a car accident. Having your policy to lapse is no different than not having any insurance coverage at all. Driving without insurance could lead to a suspension of driving privileges, suspension of your car’s registration, fines, tickets, impounding or repossession of your car, or even jail time. Even if you are pulled over for a minor infraction, any of these things could happen if you cannot prove that you are adequately insured. Your insurance statement will indicate the grace period. If your accident occurs during that timeframe, which is often a week to 10 days, then you are covered. If your accident happens outside that grace period, you aren’t covered.
Consult with a Personal Injury Attorney
If you have been involved in an auto accident, you should consult with a personal injury attorney who is licensed to practice accident injury law in your state. Personal injury attorneys work on a contingency basis, so you have nothing to lose. Your attorney will not be paid until you are compensated for your damages. To determine how to proceed with your claim, complete the Free Case Evaluation Form on this page. An attorney who practices in your area will review the details of your case and determine how to proceed with your specific situation. A strict statute of limitations applies for pursuing a claim, so don’t wait until it is too late to file a claim.
