What's an Insurance Lapse?

A car insurance lapse is a period of time when you own a car but you don't have car insurance coverage. A lapse in coverage can happen because you didn't pay your car insurance premiums or you were dropped from your insurance company.

What does a lapse in insurance mean?

A car insurance policy lapse is a period of time when a registered car does not have the legal minimum amounts of car insurance coverage. ... A lapse in coverage usually means you need to reinstate with the company you were previously with, if possible, or find a new insurance company.

How bad is a lapse in insurance?

You should avoid a lapse at all costs, no matter how short it is. You are at great risk if you are in an accident while you have no coverage. You may also incur fines or other penalties, such as the suspension of your driver's license or increased expenses from your lienholder if your insurance coverage lapses.