A coverage lapse means there is a period when your auto insurance is not active. This can happen for several reasons, including:
- Missing a monthly payment, leading to policy cancellation.
- Failing to provide required documents (vehicle title, registration, or photos for full coverage policies).
By law, insurers must notify you in writing before canceling a policy, typically giving 10 days to resolve the issue.
👉 Keeping your contact information updated is essential to receive these notices.
What if Your Policy Expires or Is Canceled?
Most importantly, you have no coverage.
- If you cause an accident, all property damage and bodily injury costs are your financial responsibility.
- Damage to your own vehicle is also out-of-pocket.
Additional Consequences of a Coverage Lapse
⚠️ License plate suspension or penalties
In some cases, the Department of Motor Vehicles (DMV) may be notified if you drive uninsured, which can lead to:
- License plate suspension.
- Fines and administrative penalties.
💸 Higher insurance costs
Even a one-day lapse can increase your premium.
Many insurers offer continuous coverage discounts—a lapse means losing those savings.
🚗 Vehicle repossession (if financed)
If your vehicle is financed, your loan requires Full Coverage at all times.
A lapse may result in vehicle repossession for contract violation.
Stay Protected at All Times
By law, you must carry active auto insurance while driving. Keeping your policy current helps avoid legal issues and financial risk.
At Calidad Insurance, our team is ready to review your policy, answer your questions, and provide free guidance to help you avoid coverage lapses.
Do you need more information about any of our insurance policies? 👉 Follow this link