It is really important to know when your car insurance expires, if you don’t catch up on your car insurance expiration date, you might get in trouble with your insurance company, because you could mistakenly enter into a car insurance lapse, but also you could make you become into a high-risk driver.
A normal car insurance policy lasts from 6 to 12 months, most car insurance companies automatically renew your policy before it’s going to expire. But if you have any reason to let your car insurance policy expires, you must know your car insurance will end at 12:01 AM of the date you end coverage.
In this topic, I will talk about everything you need to know about what happens when your car insurance policies expire, how it affects your future premiums and the policy you are currently using.
When does my car insurance policy due?
Most of us do not remember when our car insurance policy is expected to expire, but you can always check it on your policy declaration page, or on your car insurance ID cards, this way you can anticipate when you will get a new policy missive.
Your car insurance company will send you the renewal documentation of your car insurance policy from 30 to 45 days before your insurance auto insurance policy expires. This missive will include the information about your new policy, your future coverage rates, and your new policy premium.
What happens if your car insurance policy expires?
In most cases when someone allows the car insurance policy expires is due to the lack of cash to pay out their premiums.
If you are not covered by your insurance, then you will be financially responsible for all the damages caused by that accident occur with your car, and you will probably be sued if you don’t pay up the damages caused by your car.
Fortunately, some states give you an alternative, such as making a large cash deposit with the state, but the easiest way is buying an insurance policy. But also, many states keep tracking of your insurance information using an electronic database, and these systems may be updated in real-time, but also the DMV will send you a notice that will request you a proof of you have insurance. Of course, if you can’t prove it, then your plate will be suspended, and consequently, you will have to pay a fine to reinstate your plate back again.
What happens if I drive with an expired car insurance policy?
If you drive with an expired car insurance policy, then you will be a driver with a spotty record, and you should know that many auto insurance companies will consider you driving a car with an expired policy as a moving violation instead of a regular administrative ticket, and even worse, if you have too many tickets for being uninsured, you could also lose your driving license for a month or even years. Some states have mandatory jail sentences for those who have been driving a car with an expired car insurance policy many times within a short time.
Will an expired car insurance policy affect my future insurance rates?
If you have a lapse of insurance for 30 days or more, your car insurer may deny the renewal of your car insurance policy, also, your previous rates won’t be applied back again because you will be tagged as a high-risk driver, and being a high-risk driver means you will be pay higher premiums than a good driver, even you could lose your loyalty discount.
What can I do if I can’t afford your car insurance policy?
If you can’t afford your current car insurance policy, you have several tricks you can use to decrease your insurance policy rates.
You can increase your deductible, making your premium decrease enough low to be able to afford it.
You can sell your car and buy another car which you can afford its insurance policy rate.
There are many states which offer some state-funded car insurance options. They are not the cheapest option, but maybe you should consider taking a look.
The last option is to stop driving and take other sorts of transportation, I know, that is not the best deal right now, we all need to drive our car, but if you really can’t afford it, you should consider riding a bike, take a bus, subway, or even walk to work.
Finally, you can always compare other car insurance rates from other insurers, maybe you’re paying more than you should pay.
How can I end my car insurance policy?
As you already know, many car insurance companies automatically renew your car insurance policy every 6 to 12 months, but you may prefer to end your car insurance policy due to their changes to your policy are unacceptable. In that case, you must know your old policy will expire at 12:01 AM on the listed day, so your new policy MUST start at 12:01 AM on the same listed date.
This is very important to remind because you must avoid any possible lapse in your coverage, otherwise, your premium will increase a lot. You would like to switch your current car insurance policy to a cheaper one. In that case, you must be aware to make your new policy coincide with your old policy's expiration date.
If you have your car insurer will end your auto insurance policy due you had many accidents within your last renewal, so that means you need to look for a new insurer who provides your car a proper coverage. So you must remember to begin your new policy at 12:01 AM on the same day your previous policy expires.
How can I avoid my car insurance policy entering into a lapse in coverage?
The most important thing in this situation is your car insurance company will send a mail to your state’s DMV, in that letter your insurer warns your state you don’t have car insurance coverage. If you don’t have any other policy, you will receive a cancellation of your car registration until you prove them you have a new auto insurance policy for your vehicle.
Impossible that in some states request you an SR-22 certificate, others will charge extra penalties, but, beyond DMV penalties, if your car insurance policy has lapsed, you may pay for further consequences. For example, your car insurance policy expired at 12:01 AM, you have to work in the morning to go work, but you got an accident while driving to your work, let’s say you got an accident with a truck, which needs $50,000 for repairing damage, plus $100,000 of medical bills and med. As your car insurance policy has expired, and you go file a claim to your insurer, they don’t have to cover all these expenses for you, so that means your claim will be denied, and you will be the only one responsible to pay all these expenses.
Conclusion
Your car insurance often ends within 6 to 12 months at 12:01 AM of the date of expiry, you will find this date on your policy declaration page or on your car insurance ID cards.
Some states, and some car insurance companies have a grace period, but not all estates nor companies have it. Depending on your state or your car insurer would extend past this date, and or time, but it’s also possible that your car insurance company immediately lapses your policy at 12:01 AM.
You can always phone your auto company insurance to verify when your policy ends. Buy a new policy and remember to tell your new policy to start it at the same date and time as your old policy ends to avoid any lapse of coverage.
If your drive during your lapse of coverage you will cover all possible accident expenses from your pocket.
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