What to Do If Your Auto Insurance Lapses
You’re usually really diligent with your bills, especially your insurance premiums. You didn’t intentionally ignore the bill. It just slipped your mind with everything else going on in your life. Even worse, you’ve received a notice that your auto insurance policy is cancelled, and you’re ready to panic.
Now that your Massachusetts auto insurance has lapsed, here’s what you need to know.
Call Your Insurance Company Immediately
Don’t wait. Call your auto insurance provider as soon as possible. If you catch it quickly enough, they might be able to reinstate your policy with no problems. Hopefully, this is a one-time missed payment or lapse. If not, they might not be so eager to have you back. Be polite when you talk to them, and accept responsibility for what happened. That can go a long way to getting extra help.
Avoid Driving for Now
Until you have an active auto insurance policy, avoid driving. If you get pulled over for a traffic violation and have no auto insurance, your driver’s license could be suspended. Worst case scenario, you could cause an accident and have no insurance to cover the costs. Not only could you lose your license and even vehicle registration, you might be sued.
Shop for a New Policy
Maybe you found the lapse too late or the insurance company was unable or unwilling to reinstate your coverage. Now it’s time to show for a new auto insurance policy. Because your old policy lapsed, you’ll likely have to pay a higher premium than normal. It’s possible the lapse is so severe that no one on the voluntary market wants to insure you. If this happens, you may need to work with the Massachusetts Auto Insurance Plan (MAIP) to be assigned an insurance provider.
Avoid Future Lapses
Once you’ve gone through the fear and worry of not having auto insurance, it’s not something you want to repeat again. Make sure you don’t with a few simple tricks:
- Set up auto-payment through your insurance company
- Set up automatic bill payment through your bank
- Add a reminder to your calendar or phone to pay the bill
- Pay your six month or yearly premium at one time
Mistakes happen and even the most organized people can forget to pay a bill. It doesn’t have to ruin your life as long as you take care of the problem as soon as possible. If you need new auto insurance coverage due to a lapse, give us a call. When you work with an independent insurance agency like Ross Insurance, we can get multiple policy quotes to help you choose a new auto insurer.