intrude cinematic: What happens if I have a lapse in car insurance coverage?

If you have ever wondered what happens if I have a lapse in car insurance, you are not alone. Unfortunately, each year millions of people who let their car insurance lapse discover what can happen the hard way. Drivers who let their car insurance lapse often have their cars repossessed by the bank, can have their license suspended by the state, can get arrested for driving with a suspended license and can be held personally liable for any damages if ever in an accident.

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Lienholder Can Repossess Your Car

If you do not own your vehicle outright and are making payments to a bank or finance company, you are required to secure and maintain car insurance on your vehicle at all times. Failure to secure and maintain an active car insurance policy can and will result in the loss of your vehicle.

Whenever a driver has a lapse in car insurance, the car insurance company has a duty to notify the lienholder of that lapse. That is because the lienholder is the official owner of the car. Once notified, a lienholder will normally contact you to discuss the lapse in car insurance.

If the lapse in car insurance is not cleared up, the lienholder will take the steps to repossess your car. Lienholders have a vested interest in protecting any car that they own.

Whether you are making timely payments or not, if you do not maintain an active auto insurance policy on your vehicle, the lienholder will have every right to repossess the vehicle. If you have let the car insurance lapse on your vehicle, you must take the time to secure a new car insurance policy now.

Failure to secure the proper car insurance coverage may lead to your car being repossessed by the bank. To generate free quotes from different car insurance companies that serve your area, just enter your ZIP code above.

Your Driver?s License Can and Will Get Suspended

Another consequence of letting your car insurance lapse is your driver?s license can and will get suspended by the State. Once you have a lapse in car insurance, your car insurance company will report the lapse to the Department of Motor Vehicles in your state.

Once reported, your license will be suspended until you clear up the car insurance lapse and bring proof of car insurance into the Department of Motor Vehicle that services your state.

In most states, it is illegal to own and possess a car without car insurance. If your car insurance has lapsed it is important that you make plans to secure a new policy or go to the Department of Motor Vehicles to surrender the plates to your vehicle.

If you don?t, your driver?s license will be suspended and you will have to pay a fee to get your license reinstated. The fees to get your license reinstated are very costly. Typically, you will have to pay a certain amount of money for each day of suspension, so getting your license reinstated could be very costly. license suspension 300x182 What happens if I have a lapse in car insurance coverage?

Drivers Can Get Arrested For Driving With a Suspended License

Drivers who drive with a suspended license can get arrested for driving while under suspension. If your lapse in car insurance is reported to the state and your license is suspended, you may not operate a vehicle in your state. If you choose to operate a vehicle and are stopped by the police, you may be arrested for driving with a suspended license.

Many drivers are unaware of all the consequences of letting their car insurance lapse. To avoid getting arrested for driving with a suspended license, take the time to generate quotes from multiple insurance companies online now. If your car insurance has lapsed, don?t let another day pass. Getting multiple automobile?insurance?quotes for FREE is easy, just enter your ZIP code in our car insurance comparison tool.

Driver?s Can be Held Personally Liable For Damages

Although some states have uninsured motorist coverage, if you operate your vehicle and are in an accident you may be held personally liable for any and all damages. One of the main reasons why drivers must always have an active car insurance policy is to protect their investment and make sure they are covered if they are in a car accident.

If your car insurance has lapsed and your vehicle is involved in an accident, the owner of the vehicle can be held personally liable for any damages.

In addition to being liable for damages sustained by others, drivers who let their auto insurance lapse will also be liable to the bank for any damages to the car itself. In some cases, drivers will need to pay to have the car repaired or replaced. That is why it is important to maintain an active car insurance policy on your vehicle at all times. Failure to keep an active policy can result in the loss of a large sum of money.

If you have let the insurance on your vehicle lapse for any length of time, it is important that you take action right now and secure the proper coverage for your vehicle today. With so much at stake, you should take the steps to make certain you and your family are always covered.

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