Car Insurance - Is Your Insurance Lapse Making Coverage Reinstated?
If you have been paying your auto insurance policy for a number of years and have been making all the payments on time, you probably don't need to do anything at all to reestablish your coverage. In fact, many consumers simply don't know how to reinstate their coverage. They figure that since they've paid their premiums on time for years, their insurance company should automatically renew the policy without them having to do anything. However, this is not always the case. Many consumers who renew their coverage usually end up with higher rates because their old policy was canceled due to nonpayment. So it pays to know your options when you want to renew your auto insurance policy.
The first thing you need to know if you want to renew your auto insurance policy is what type of lapse coverage to purchase. The two types of lapses that are most common are theft and traffic violations. If you've paid your premiums on time and have no tickets or accidents on your record, you won't need to buy additional coverage. However, if you've been in an accident or experienced one of these other types of lapses, you'll need to take action.
One option is to get a limited time or "bump-back" coverage. This means that if you're in an accident within a specific period of time, your auto insurance coverage will be restored to its original price. This is a great option for people whose insurance policies have lapsed but who want to make sure that their coverage will be effective immediately. Many auto insurance companies offer this option, so it shouldn't be hard to find one that provides this special feature.
Another option is called "average six-month coverage." how much is insurance on a v6 mustang -month coverage is designed for people whose car insurance history isn't all that impressive. The average period of time that your insurance company has allowed your policy to lapse is six months. If you're just now considering buying insurance because of this lapse, you might be able to save a substantial amount of money by getting average six-month coverage instead of standard auto insurance coverage. Just be sure to read the fine print and check with several different insurance companies.
How about the average six-month period of time for your state's bodily injury limit? Every state has a different limit on this. Some states allow passengers who are in the car during a wreck to be covered for costs associated with treatment at a hospital, while others require that drivers be covered for costs related to treatment received at a hospital. Some states don't have a limit at all. If your insurance history doesn't include information on your state's minimum bodily injury limit, you might want to consider adding this element to your coverage. Be sure you understand how the limit works so you choose the coverage level that will give you the most protection at the lowest cost.
Did you know that "lapsed coverage" is a very serious matter? Simply put, it means that the insurance company isn't paying your claim yet. This can happen for several different reasons. First, you could get into an accident that completely destroys your vehicle. Second, you could hit a deer or other animal and need emergency repairs. Finally, you could have theft or vandalism done to your vehicle and not realize it until you go to the insurance company to file a claim.
How does your car insurance policy lapsed get fixed? Most insurance companies suspend your coverage for up to three months, or in some cases longer, if you are found to have lapsed coverage. Suspending your coverage gives the insurance company time to come up with the money to pay your claim. If the damage to your vehicle is so extensive that you can't get your car fixed without spending a lot of money, your insurance company likely won't be willing to reinstate your coverage.
If you are finding that you've had your car insurance coverage lapse, don't assume that everything's lost. You can still get it reinstalled! There are several ways for you to get your car insurance policy back on track. If you're currently facing a lapse but aren't sure how to fix it, contact a car insurance company for assistance.