What happens if I let my car insurance lapse?
I didn't have the money to get a new car insurance policy, so I let the previous one lapse. What will happen now that I let my car insurance lapse?
“If your car insurance lapses, the situation can cause a number of issues.
The first matter is a legal issue. You’re now uninsured, meaning that it’s illegal for you to drive (unless you live in Virginia or New Hampshire). If you get in an accident, you risk fines, a misdemeanor charge, and being on the hook for any damages.
Letting your insurance lapse can also cause a huge financial burden. Even if you get a new policy within 30 days, your rates can go up an average of eight percent.
If you wait longer than 30 days, you’re now in the high-risk category. That means your rate can go up by as much as 35%.
With all of these issues, the best plan is to never let your car insurance lapse. Instead, find other ways to trim your budget. It’s peace of mind you can’t put a price tag on.”
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