N. Raleigh | (919) 878-7786
S. Raleigh/Garner | (919) 661-1100
 

Man wearing a suit sits in the driver seat of his car with his hands lifted to his head in exasperation

An insurance lapse occurs when an auto insurance policy is canceled and an individual has a period of time without insurance coverage. It is important to keep your insurance policy paid and active because if an accident occurs while a policy is canceled, insurance companies can deny claims. If you are notified of a lapse in insurance coverage, you will need to contact your insurance agency and determine whether you can reinstate your policy. Reinstating simply means that you will continue with the same policy you had prior to cancellation. If reinstatement is not possible, your insurance agent may suggest rewriting a new policy.

Other than the possibility of claims being denied if an accident occurs, a lapse in coverage can have many other consequences as well. For example, in North Carolina, the Department of Motor Vehicles is notified if an individual has a lapse in insurance coverage and a fine will typically incur. Along with this, there is the possibility that DMV can suspend or revoke your driver’s license. Finally, if you are making payments on the vehicle to a bank or finance company, your car can be repossessed. The moral of the story: be sure to pay your auto insurance on time to avoid extra expenses!

Also Read: What Auto Insurance Coverages Do I Need?

Share |


No Comments


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010


View Mobile Version
Blog IconFrom Our Blog

READ MORE   arrow
Testimonial IconFrom Our Customers
READ MORE   arrow
  • AAA
  • Builders Mutual
  • Discovery
  • Foremost
  • Lilitz Mutual
  • National General
  • Nationwide
  • Progressive
We have the expertise to find you the right coverage at the right price. 
Get Started   arrow
© Copyright 2020. All rights reserved. Powered by Insurance Website Builder.