Cheap Auto Insurance Companies That Accept Lapses in Coverage in 2024
Auto insurance companies that accept a lapse in coverage are more common than auto insurance companies that don't accept a lapse in coverage. A lapse in coverage is 30-60 days when you have no coverage, after which you'll probably see an increase in your rates and possibly other penalties like a suspension of your driving privileges and vehicle license. Some companies offer a grace period of 10-30 days to renew your coverage with no penalties.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
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UPDATED: Jun 13, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- A lapse in coverage is a period of between 30 and 60 days when you don’t have auto insurance
- Car insurance after a lapse in coverage is usually more expensive because any gap in coverage is perceived as a higher risk to insurance companies
- In addition to higher rates after a car insurance gap in coverage, you may face other penalties like suspension of vehicle registration and driving privileges as well as fines
A lapse in auto insurance coverage occurs if you are uninsured for a short time, usually between 30 and 60 days. This can be caused by anything from a missed payment to forgetting to renew your coverage.
Unfortunately, even a short lapse in coverage can mean an increase in your insurance rates, regardless of whether you have liability or full coverage auto insurance.
This is because a lapse in coverage increases your perceived risk in the eyes of insurance companies. You may also face additional penalties we’ll discuss in more detail later.
Are there auto insurance companies that accept a lapse in coverage? Where can you find the cheapest auto insurance for a lapse in coverage? Read this article to find the answers to your questions about auto insurance companies and lapses in coverage.
Before we get started on this overview of auto insurance companies that accept lapses in coverage, take a minute to enter your ZIP code in our rate comparison tool to get a free quote from an insurer in your area today.
Where can you find auto insurance after a lapse in coverage?
Most companies will accept a lapse in coverage, but you can expect a few penalties, including:
- An increase in rates
- Suspension of driving privileges
- Suspension of vehicle registration
- Traffic tickets
- Fines for being uninsured and for reinstating your suspended license and registration
Even though there will be an increase in your rates and other penalties and charges, some companies will have lower rates than others for a lapse in coverage.
After a lapse in coverage, the cheapest companies to buy insurance from will depend on your specific circumstances, where you live, and more.
How can you save on your rates after a lapse in coverage?
In most cases, you’ll face a rates increase after a lapse in coverage, regardless of the circumstances surrounding the lapse.
However, there are some ways you can save, including comparison shopping and buying six-month or annual coverage, rather than paying monthly.
With longer-term auto insurance, you automatically lower your perceived risk because there’s no chance of a future lapse during the current term of your coverage. This means lower rates, though the upfront cost is higher than if you pay monthly.
With comparison shopping, you’ll be able to ensure you’re getting a fair price by getting multiple quotes (at least three) to understand better the average rates given your specific circumstances.
Are there auto insurance companies that don’t accept a lapse in coverage?
Most insurance companies will accept drivers, even after a lapse in coverage, but some may cancel your coverage. In that case, you may need to find another insurer.
The good news is, many insurance companies offer a grace period of between 10 and 30 days in which you can renew or reinstate your lapsed coverage without any penalties.
Still, you’ll need to check with your insurer to determine if this is offered and the exact length and requirements.
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How can you avoid a lapse in coverage?
The best way to avoid a lapse in coverage is to renew early so your coverage doesn’t expire. You can also buy longer-term coverage, so you don’t have to worry about monthly bills.
If longer-term coverage isn’t an option for you, make sure you consistently pay your insurance premium on time.
How to find high-risk auto insurance
A lapse in auto insurance will increase your perceived risk and, in some cases, may result in you being classified as a high-risk driver.
As a high-risk driver, you’ll find your insurance rates are significantly higher than for average drivers (up to double that of low-risk drivers).
Depending on just how high risk you are (i.e., if there are other issues or incidents on your record that contribute to you being high risk), you may have trouble finding coverage.
To find the best high-risk auto insurance, you’ll need to comparison shop (and you can get started using the tool on this page).
It’s also a good idea to look at the National Association of Insurance Commissioner’s complaint index to see how companies stack up in terms of customer service.
For truly high-risk drivers, particularly those unable to find coverage through traditional means, most states offer some form of insurance that allows drivers to maintain at least the required minimum coverage to drive legally.
States typically partner with the Automobile Insurance Plan Service Office to provide this coverage.
Auto Insurance Companies that Accept a Lapse in Coverage: The Bottom Line
Most auto insurance companies will accept a lapse in coverage. Still, you may end up paying higher rates, and in some cases, you’ll also face penalties like suspension of your driving privileges and vehicle registration, as well as fees.
You can avoid a lapse in coverage by paying your premiums on time and renewing your coverage before it expires.
If you’ve had a lapse in coverage (and even if you haven’t), you can save on your rates by comparing quotes from multiple companies. Use your ZIP code in the tool on this page to get your first free quote right now.
Frequently Asked Questions
What is a lapse in coverage?
A lapse in coverage refers to a period when a policyholder has gone without auto insurance. This could happen due to non-payment, policy cancellation, or failure to renew the insurance policy.
Why do some insurance companies accept lapses in coverage?
Some insurance companies are willing to accept policyholders with lapses in coverage because they understand that life circumstances can lead to temporary lapses. These companies aim to provide affordable options for individuals who may have experienced a gap in their auto insurance.
Are there specific insurance companies that accept lapses in coverage?
Yes, there are insurance companies that specialize in providing coverage for individuals with lapses in their auto insurance history. These companies typically focus on non-standard or high-risk insurance markets and may offer more lenient acceptance criteria.
Will I pay higher premiums if I have a lapse in coverage?
In most cases, individuals with lapses in coverage may face higher premiums compared to those with continuous coverage. Insurance companies consider lapses as a higher risk factor, leading to increased premiums. However, the extent of the increase depends on various factors, including the duration of the lapse and the insurance company’s specific policies.
How long of a lapse in coverage will insurance companies accept?
The length of a lapse in coverage that insurance companies will accept can vary. Some companies may be more lenient and accept shorter lapses, such as 30 days or less, while others may consider longer lapses of 60 days or even 90 days. It’s essential to check with individual insurance companies to understand their specific policies regarding lapses.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading fina...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.