What Should I Know About A Lapse In Coverage?

A lapse in insurance coverage is not a problem unless:

– You drive the uninsured car or permit the car to be driven during the lapse in coverage (driving uninsured is illegal).
– Your license was suspended because of a conviction related to the operation of the automobile. (E.g. DUY), this will negatively affect you in the future when trying to get coverage.
– Your policy was cancelled due to failure to inform the insurer of a collision or conviction.
– Your policy was cancelled for non-payment of the premium. This will also negatively affect you when trying to get future coverage.

When applying for insurance after a lapse in coverage you’ll need to prove that you were previously insured. Generally this information can be provided in a letter outlining your previous policy number, company, how long you were insured for and your collision and conviction history. You can get this from your previous broker if changing insurance providers.

If you want to cancel your insurance coverage provide a letter to your insurance provider outlining why you will no longer need coverage. For example: If you’ve sold your car and don’t plan on replacing it or you’re moving out of the country, even in the case were you’re driving a company car and don’t need your own.

You may be faced with higher premiums if you’ve had a lapse in coverage. Many insurers don’t give full credit for driving experience in situations where there’s been a lapse in insurance coverage.

Overall it’s best to ensure that there’s never a lapse in your insurance coverage. We suggest making notifications for your payment schedule and renewal dates.