No car has authority to be on the road without insurance coverage at least it is a requirement of the law governing every state. Motor Trade insurance is so relevant that car owners should not ignore any of the requirements needed in its maintenance to prevent any possibility of lapsing. The lapsing of insurance happens when one fails to renew at a given time leaving it to expire. Insurance lapse means applying for new insurance or reinstating it of which the procedures can be time consuming and a waste of money. Nevertheless, it is still possible to seek motor trade insurance again with the following steps:
- Call your insurer when you realize that a situation like that has happened. Some insurers may decide to reinstate it but of course at a fee while others will cancel the entire deal sending one to applying for new insurance coverage. To get the deal back and in good time, it is better to pay the premium rates via online banking since it is the only way that will ensure fast update of the insurance deal.
- An extension of your coverage will be upon the insurance company since they measure the level of loyalty. Here, one will be required to enquire on the decision of the insurer. Some will recommend the client to start with the procedure of renewing the former policy while others will recommend a reapplication.
- The next step is for the insurance company to contact the Department of Motor Vehicles (DMV) and inform them of the lapsed coverage. For security reasons, the DMV will send a form that will need quick response about the lapsed cover where one will be required to provide evidence of being responsible of the lapsed insurance.
- In case of an online deal, print the insurance proof and place it on the car in case of police checks as you wait for the processing of the original
- Shop around for new, preferable and affordable motor trade insurance. It is through insurance lapsing that one discovers better offers from other insuring companies. Researching and enquiring from friends enable one acquire better insurance policies.
- Lastly, avoid future insurance lapses since it creates bad image to your insurer and it can cost much when reapplying for a new policy or even in the reinstating of the same policy.
Repercussions of driving with a lapsed insurance
- It is regarded as unlawful and a criminal offense to drive with an expired insurance policy
- Suspension of one’s driving license
- One is entitled to penalties by the state
- It can easily lead one to jail and remain in bars for quite a long period reason being attempting to endanger the life of others
- When a policy is lapsed, it stops being effective so in case of an accident, no claiming should take place.
Reasons of insurance lapse
- Lack of payment of premiums whereby most insurance companies do not advocate for accumulation of payments they will definitely make reminders of payment but in case a client does not honor the request, then the policy lapses.
- Late payments of premiums is a possibility of insurance lapse
- A total lack of premium payment shows that the client has no interest in the policy hence lapsing of the policy.