What happens if I have a lapse in car insurance?

One in eight drivers are uninsured—according to a

study done by the Insurance Research Council (IRC). That’s a staggering number of folks on the road who are driving without insurance. And whether intentional or not, a lapse in coverage qualifies as being uninsured. 

Because we know what can happen if you’re caught driving without insurance, let’s explore what qualifies as an insurance lapse and how you can avoid one in the first place.

What is a lapse in car insurance?

Simply put, a lapse in coverage is when your insurance policy becomes canceled, which leads to not having insurance coverage on your vehicle. And before you start to worry about your own policy being canceled, here are some reasons why a lapse in coverage may occur: 

• Failure to pay your bill (forgot or received a new credit card and need to update details)

• Canceling your policy before having another policy in place

• Not obtaining insurance on an owned vehicle

Because a lapse in coverage is driving without insurance, it’s important to understand the downsides of having a lapse in car insurance. 

Consequences of having a lapse in coverage

Driving without insurance has its own set of downsides, and you can read about them in this blog article. But how do those consequences relate to a lapse in coverage? 

One of the more significant outcomes of a lapse in car insurance is having an accident or loss where you don’t have an

active insurance policy. Without insurance, you may be responsible for the entire loss and paying for it all out of pocket. Additionally, if lawyers get involved in the claims process, and there’s no protection from an insurance policy to cover legal fees and/or defense costs—those legal fees would fall on the uninsured (you).

Other consequences that may come from a lapse in coverage are: losing your license and/or registration and potentially proving financial responsibility with the state that ultimately leads to you paying a higher premium because you now have a history of driving without insurance. 

A lapse can also make it difficult to obtain car insurance. By knowing the downsides of a lapse in coverage, you can take steps to ensure that it doesn’t happen to you in the future.

Preventing a lapse in car insurance

Consistency is key when it comes to avoiding a lapse in insurance. That consistency comes from continually having an active auto insurance policy and paying your bill on time. Not only will that prevent a lapse, but it can help you qualify for a lower premium and better policy overall.

At HiRoad, we have automatic billing options for customers so your payment happens each month, at the same time—reducing your chances of missing a bill and having your policy canceled, resulting in a lapse. 

If you are at risk of having a lapse in coverage, we welcome you to connect with our Customer Care team. We’re here to address your questions or concerns. 

The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.