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Dealing with a Lapsed Insurance Policy

If you are a driver, then you need to have good insurance coverage to protect you at all times. If you want to be certain that you are covered and well protected, then you need to make sure that your policy is always in good standing. If it's not, then you could end up having to pay for damages after a car accident, and this could really ruin your financial situation. As such, you need to make sure that your policy does not lapse.

A lapsed auto insurance policy is not going to do you any good, no matter what kind of new car rebates and interest rates you received when you purchased the car. If you are at fault for an accident or even if someone else hits you, you may not be entitled to any coverage from your provider. Think about how much it could end up costing you if you have to pay for your vehicle repairs or someone else's repairs out of your own pocket. Most people simply don't have the funds to do this on their own, and it can cause real problems for them. You could end up getting sued and losing a lot of what is important to you.

Reasons for Policy Lapses

One of the most common reasons for a lapsed auto insurance policy is failure to make the monthly payments. If you want your policy to be in good standing at all times, then you're going to need to keep up with the payments on it. You should make sure that your payments are always on time. If you do make your payments late every month, then you provider will have the right to cancel your coverage. To ensure that this doesn't happen, you may wish to consider setting up some automatic withdrawals from your bank account.

Another reason that your auto insurance policy might end up lapsing is if you were not honest when you filled out your application or if you were not honest when filling out a claim. If you aren't forthright when you apply for coverage or when you try to get compensation after an accident, your car insurance provider will have reason to drop your policy. Don't risk this happening to you. Instead, always be completely honest when you are dealing with your provider, and you won't have to worry about your policy being dropped.

Getting a New Policy

It may be a bit difficult for you to get a new policy if you have allowed your old one to lapse. Insurance providers are going to want to know about your history when they are offering your premiums, and getting your policy cancelled for any reason is going to make a big difference. Your best course of action is to be as honest as you possibly can about what happened. That way, you won't have to deal with being concerned about fraud, and you can start out your new relationship by being honest.

When you do find a new provider that is willing to offer you a policy, you need to take the time to find out what their policies are in regards to cancelling coverage. You are going to want to be on your best behavior so that you can make sure you never have to go through dealing with a lapsed policy every again. Find out how often you need to make the payments on your policy and whether or not you will be given any leeway if your payments are ever late. Finding out this information now will make sure that you don't have to deal with problems later.


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