The Effects of a Lapse in Car Insurance

A lapse in insurance coverage means you and your car aren’t covered by insurance for a period of time. Whether intentionally or unintentionally, it’s important to get a new auto insurance plan if you are suddenly uninsured. At Roadway Auto Insurance, a part of MAIF car insurance, we want drivers to stay covered and know what to do if they find themselves uninsured. There are multiple things that can happen if you’re uninsured, and it’s important to get a new insurance plan as soon as there’s a lapse in your auto insurance.

MAIF Car Insurance Coverage in Maryland

What Happens During a Lapse in Car Insurance?

If you miss a payment, your insurance company will give you a warning and a grace period. Typically, this grace period is 10 to 20 days. If you do not pay during this time, your insurance company will cancel your policy.

Your insurance will increase after this period. After 30 days, it can increase by 8%; over 30 days, your car insurance rate can increase by 35%. Getting a new car insurance policy can save you money and ensure that you’re covered. If you drive uninsured, you could lose your license or have your vehicle impounded.

Additionally, if you are in a crash and uninsured, you have to pay for damage to the other person’s vehicle and any possible medical expenses. Drivers can also face jail time or fines if they are uninsured and in an accident. Even if you aren’t in an accident, it’s risky to drive when you have a gap in coverage.

What To Do If You’re Uninsured

You can easily reinstate your insurance if you missed a single payment. However, if you are insured for a long period of time, you can be seen as a high-risk driver. If you suddenly find that you’re uninsured, or if you have been uninsured for weeks, talk to your insurance company to find the right plan for your needs. Do not drive until you find a new policy and are reinsured. Many companies have a grace period if there is a small lapse in your insurance.

It’s also important to know how to prevent this from happening. To prevent a lapse in auto insurance, stay on top of paying for your policy. Know the end date of your policy, or better yet, set up automatic payments so you don’t have to worry about paying on time.

Do you need car insurance? Call Roadway Auto Insurance today at [new_patient_phone_span]. You can also get a free car insurance quote on our website. We will help you find the right policy for you and make sure you stay insured in the event of an accident.

Roadway Auto Insurance