A lapse in car insurance is any amount of time the policy is not active and can lead to steep fines, hefty penalties and higher premiums down the road.
Understand the implications of a car insurance lapse, how it affects your record and what you can do to avoid it.
Car insurance costs continue to rise. According to a report from Bankrate, average premiums for full coverage auto insurance hit $2,543 in 2024, a 26% increase from 2023. ; Unsurprisingly, drivers across the U.S. are looking for ways to save. Nearly half (49%) of auto insurance customers are actively shopping for a new plan, according to J.D. Power. ; Full coverage car insurance combines three kinds of coverage and is usually required if you lease or finance your car.
If you experience a car insurance lapse and aren't prepared, you could face high premiums and financial hardship in the event of an accident.
Car insurance can lapse for various reasons. Find out if reinstatement is an option, if you need to switch carriers, and if rates will increase as a result.
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