What Can I Do if My Car Insurance is About to Lapse?
If your car insurance is about to lapse, you may be wondering what to do to keep the coverage you need. While a coverage lapse can put you in a very bad financial situation if you are involved in an auto accident, there are several ways that you can make the best of it.
Should You Keep Your Current Insurance Provider?
The single worst thing you can do is ignore the situation, and assume that you will not be involved in an accident during the lapse period. Regardless of whether an accident is your fault, you can end up saddled with thousands of dollars in medical bills and car repair costs if your auto policy is not in force. For most consumers, this represents an unmanageable financial burden.
If you plan to keep your auto insurance with the same company, you should contact your agent. He or she may be able to convince the company to grant an extension. Your agent may also be able to switch you to a different type of policy to help you avoid having a lapse in coverage.
Replace Your Coverage
On the other hand, if you have been thinking about looking for a better deal, this might be the perfect time to shop around. Many auto insurance companies offer online quotes, so you can compare coverages and prices from the comfort of your own home. Spending an hour or two gathering and comparing online quotes can potentially save you hundreds of dollars per year.
You can also visit an independent agent to get quotes on replacement coverage. Since independent agents represent multiple companies, they can easily obtain multiple quotes, and help you decide which policy is best for you. In some cases, you will find better coverage at a lower price than you pay for your current policy.
Regardless of whether you want to keep your current policy, or you want to shop around for new coverage, the most important thing you can do it to take immediate action. Auto insurance helps shield you from substantial financial losses, so it is critical that you keep some form of coverage in place.
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