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Reinstating a lapsed policy
In some cases, you may be able to contact your insurance provider and reinstate your car insurance policy after a lapse in coverage. Your eligibility for reinstatement will depend on how long the insurance lapse lasted:
If you contact your insurer less than 30 days after your lapse, you may be able to reinstate your policy with an average rate increase of 8-9%.
If you contact your insurer between 30 and 60 days after a lapse, you may be able to reinstate your policy with an average rate increase of 35-50%.
If your insurance lapse lasted for 60 days or more, you likely will not be eligible for reinstatement. In this case, you’ll need to start looking for a new car insurance provider.
Insurers may also take your payment history into account. If you’ve been with your current provider for many years without a missed payment, for example, they’re more likely to be forgiving of an insurance lapse.
The best ways to lower your rates after a car insurance lapse
1. Shop around with a trusted insurance agent or broker
Shopping for car insurance can help you find lower rates following a lapse. For a quick, easy shopping experience, use an insurance broker like Jerry
to get quotes from dozens of top providers in a matter of minutes. With Jerry, drivers can compare customized quotes from some of the top providers in their area. Each of these results will be tailored to your specific driver profile, meaning savings may be available, even with a lapse on your record.
Keep in mind that while most Jerry users finding savings using the app, not all drivers will have the same results.
2. Ask your provider about car insurance discounts
Many car insurance providers offer car insurance discounts
to drivers for things like a good driving record, a telematics device, or even good grades. Ask your provider about car insurance discount options available to you. 3. Raise your car insurance deductible
A higher car insurance deductible
can result in lower car insurance rates. Just remember that you’ll still be responsible for paying your deductible out-of-pocket after an accident, so you should never raise it higher than you can afford. 4. Bundle your home and auto insurance
Bundling car insurance with other policies
, such as homeowners' insurance or renters insurance, can result in savings between 15-25% based on your chosen provider. Ask your insurance provider about bundling to see if it’s worth it for you.4.717k Ratings 5M+Drivers Joined
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FAQ
Will you get in legal trouble for a car insurance lapse?
Many states impose a license reinstatement penalty after a car insurance lapse. These penalties range from $20 per lapse to $500 per lapse and may include additional fees for each day of lapsed insurance. Check your state laws to see if they include penalties for a car insurance lapse.
Does a car insurance lapse affect your credit?
You usually won’t see an impact on your credit after a coverage lapse.1 If your car insurance payments go into debt collections, however, you might see some resulting dips in your credit score. How can you avoid a lapsed car insurance policy?
To avoid a lapsed car insurance policy, choose coverage options that you can afford and set reminders to make your payments on time. Additionally, be mindful when scheduling the start and end dates for your new policy, as scheduling them without overlap can lead to a coverage lapse as well.