It’s not uncommon to forget to pay a bill every now and then – you may even be struggling for cash and have no choice but to put certain bills aside. No matter what reason you may have for falling behind with your payments there are times when these things happen, and you won’t have much of a choice but to deal with the consequences. In instances where you don’t pay your car insurance bill, you may find that your deal lapses. But where do you go from here, and what is likely to happen next?
What can you do?
One of the most important things to remember is that if your car insurance lapses, it’s not a wise idea to drive your vehicle. While it may not be possible to completely avoid your car, try to use public transport or ask a friend for a ride whenever you can.
First of all, when you’ve realized that you’ve missed a payment, or you find out that your coverage has lapsed, it’s often a wise idea to get in touch with your insurance agent to see what you can do – or even directly contact the company you’re with.
If you don’t wait too long and talk to your insurer quickly enough, you may have the chance to reinstate your policy, pay the bill, and take care of it all fairly easily (especially if you’re a good driver who keeps track of your payments usually). Unfortunately, this may not always be an option.
If you’ve left your insurance for quite a while, it may not be such a simple task to reinstate your policy. In these instances, it’s often a good idea to talk to your insurance agent to see what your options are. In some cases, you may have no choice but to choose another insurance company – which could be more expensive than your previous deal.
Do you need auto insurance?
There are quite a few reasons why it can be crucial to be insured whilst on the road. For one, it’s required to drive legally in most states – and if you drive without car insurance, you could have an issue on your hands.
In the case of an accident where you are at fault (which could happen, no matter how good a driver you are), you wouldn’t be covered by your insurance plan. Because of this, it’s likely that you’d have to pay for a number of things; from repairs for the other driver’s car, to legal fees if they decide to sue you.
For these reasons and more, it is often a good idea to keep off the road if you don’t have car insurance to protect you.
What about those who rent their car?
In most cases, a leasing company will require that a borrower have insurance. Because of this, you may be in even more of a tough spot if your car insurance has lapsed. Often, they’ll get coverage for the vehicle for the car and make you pay for it – which may not work out too well for you.
All in all, it’s often wise to either reinstate your insurance deal as soon as possible, or find a new company to keep you insured whilst driving on the road.