Unfortunately, we all run into unexpected emergencies, and sometimes important things can get overlooked. Other times, we hit financial crises and we have to choose one bill to pay and one to ignore. While these times are difficult and often unavoidable, it is important to be informed about what can happen if you allow your car insurance policy to lapse. It is illegal in all states for you to operate an uninsured vehicle, and the punishment for doing so can involve anything from getting your car impounded to paying heavy fines. So if you do end up being forced to let you car insurance policy lapse, it is vital that you do not drive your car until you get the policy reinstated. Most states have their own definition of what a "lapse" is, but it's usually around 7 to 10 days. In most states, there are fees associated with allowing your car insurance policy to lapse, and in some cases, repeat offenders could be subject to having their registration suspended. And in any of these cases, being stopped by a police officer while your insurance is lapsed or your registration is suspended will result in further penalties.
It is not just the government that is interested in you maintaining current car insurance. Car insurance providers also look at whether or not you have had lapses in your coverage, and they may question you about lapses that show up. There are certain situations where it is permissible to allow your car insurance to lapse, but they differ from state to state. Some of the situations might include a vehicle being wrecked or otherwise inoperable, a vehicle being sold, the vehicle's owner moving out of state, or even the vehicle being used seasonally for agricultural purposes. Again, these caveats will vary from state to state, and most will require you to sign an affidavit swearing to the reasons that you allowed the car insurance to lapse. In most states, you will need to send this affidavit to the local license tag office, but it's always best to check the rules for your state specifically. It's always better safe than sorry.
It can be a bit of a pain sorting out a decent car insurance deal for your new dream machine. Let's face it the search for a cheap deal that gives you complete piece of mind can be slow and frustrating. As much as we'd all like to settle for the first policy we stumble across it normally pays dividends to spend some time shopping around. This isn't going to be an especially fun experience but follow our quick guide and we can hopefully remove some of the hassle.
? Your first job is to decide what sort of policy is best for you. Basic third party insurance will cover the cost of damage to another driver's vehicle and is the minimum legal requirement. Although this'll be a cheaper option it won't give you much protection on anything in the way of damage to your vehicle.
? Unless you're on a particularly tight budget it's probably advisable to look beyond third party and plump for fully comprehensive car insurance. This offers the extra assurance of covering any damage to your own car in the event of an accident caused by yourself. Shop around and you'll find that you can get add-on benefits like the use of a replacement car whilst yours is being repaired.
? If you plan on using your vehicle for occasional business related travel make sure you check whether you're covered for accidents that happen outside your social, domestic routine unless explicitly mentioned in your agreement you probably won't be. In this event additional cover is advisable.
? If you're a young driver insurance premiums are almost certainly going to be higher than for a more established, experienced driver. A good way to reduce costs is to get some extra qualifications beyond the standard driving test, like motorway or night driving.
? Limit your cover to named drivers.
? It might be an equally worthwhile money saving tactic to improve the security on your car. Check with your insurer but often the installation of car alarms, immobilisers and parking your vehicle in a garage overnight can help.
? It's worth keeping your eyes peeled for a protected no-claims discount. It will cost you a little more but protects any accumulated no-claims discount that may otherwise be reduced in the event of a claim. No-claims discounts can mean hefty savings of up to 65%.
? Save time and money by going through a broker or a company who uses the services of numerous insurers, this will make sure your cover is the most suitable and hopefully cheapest selected from a larger pool of deals.
? Do make sure you keep you insurer notified of any changes of circumstance and indeed anything that may affect you cover, any failure to disclose relevant information might invalidate a claim.
Both Bill Morgan & Evan Moss are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Bill Morgan has sinced written about articles on various topics from Travel and Leisure, The Internet and Humour. Bill also writes for Low.com. Save money and get great deals on health, life, homeowners and . Click the underlined link to learn how to lower your. Bill Morgan's top article generates over 1220000 views. to your Favourites.
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