You always want to avoid any lapses in your auto insurance policy. Here at Wellspring Insurance Network Inc. serving the greater Frederick, MD area, we have found that many people do not fully understand what it means to have an auto insurance lapse and why this is a bad thing. Here is what you need to know about auto insurance lapses.
What is an Auto Insurance Lapse?
An auto insurance lapse, also called an auto insurance gap, means that you did not have auto insurance coverage. Some people fail to pay their auto insurance policy and experience a lapse, while other people simply do not renew their policy or obtain a new one. A lapse can be a short period of time, such as a day or a week, or a prolonged period of time, such as months or years.
What Happens if Your Auto Insurance Lapses?
If your auto insurance lapses, you do not have any auto insurance coverage. By law, you are not legally allowed to be driving around with auto insurance. Your registration may also be revoked or suspended if your auto insurance lapses.
In the long term, your auto insurance rates may increase if you have a lapse in your auto insurance coverage. You often get a discount for continuously having auto insurance coverage, so you lose this discount due to a lapse.
Don’t let your auto insurance lapse. If your current auto insurance policy in the Frederick, MD area is set to be canceled, contact Wellspring Insurance Network Inc. today. We can help you to quickly get a new auto insurance policy so you do not have a lapse in auto insurance.