Cheap Auto Insurance Companies That Don’t Charge You for a Lapse in Coverage in 2024
Most auto insurance companies do charge you for a lapse in coverage, but not directly. Auto insurance companies that don't charge you for a lapse in coverage send your uninsured status to your local DMV, where you need to pay a reinstatement fee plus the monthly payment you missed. Opt for liability-only coverage to make auto insurance cheaper, which is 51% cheaper than full coverage. Shop around and compare multiple companies until you find the best rates.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
Licensed Insurance Agent
UPDATED: Nov 27, 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.
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: Nov 27, 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
- You’ll have to pay a reinstatement fee to restart your auto insurance coverage
- Some auto insurance companies report your uninsured status to your local DMV
- Drivers can lose their driving privileges for a lapse in coverage
Are you searching for car insurance companies that don’t charge for a lapse in coverage? Car insurance after a lapse in coverage can drive up future insurance rates.
But don’t worry – we’ll show you the cheapest auto insurance for a lapse in coverage.
Our guide explores why auto insurance coverages go up when you have a lapse in insurance. Also, we’ll explain where you can find the best car insurance after a lapse in coverage.
Once you learn everything about auto insurance companies that don’t charge you for a lapse in coverage, enter your ZIP code in the free comparison tool above to compare multiple companies in your area.
What are the best auto insurance companies that don’t charge you for a lapse in coverage?
Generally, car insurance companies charge you for a lapse in coverage when you have to reinstate your policy.
The amount you usually have to pay is the cost of your monthly policy plus the reinstatement fee and late fee.
A lapse in coverage means that there was a period where you didn’t have the minimum auto insurance requirements.
In addition to paying the last payment before your policy is canceled, a car insurance gap in coverage can generate more expensive rates when you want to reinstate your policy or purchase a new one.
To prevent a lapse in coverage, you can suspend your auto insurance policy, but you can’t drive your vehicle.
Suspending your car insurance policy prevents you from losing your driving privileges and pauses your insurance policy.
What causes a lapse in auto insurance coverage?
Three things can cause a lapse in car insurance coverage. Check out the list below to see those reasons.
- Your policy was canceled for more than 30 days
- An auto insurance policy was canceled because of non-payment
- You were uninsured because you weren’t in the country
A lapse in auto insurance increases your rates, suspends your driver’s license, and fines you with a DMV penalty.
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Why do auto insurance companies charge you for a lapse in coverage?
Auto insurance companies that do charge you for a lapse in coverage are up front on how much you owe.
If you have a lapse in coverage, car insurance companies consider you a high risk. Therefore, future auto insurance rates will be much higher than average.
According to the National Association of Insurance Commissioners (NAIC), the average cost of full coverage auto insurance is $90 a month.
But a lapse in car insurance coverage can put you in a high-risk pool. Here’s a list of the best auto insurance companies and how much they charge for high-risk auto insurance per month.
- Allstate – $187/month
- Farmers – $157/month
- Geico – $111/month
- Liberty Mutual – $186/month
- Nationwide – $136/month
- Progressive – $157/month
- State Farm – $108/month
- USAA – $98/month
These monthly rates reflect the cost for drivers who have no insurance history.
A driver with no car insurance history correlates to the same risk as a person who has a bad driving record. However, driving without insurance is more costly.
Why does a lapse in auto insurance make you a high-risk driver?
Gaps in coverage mean you were uninsured after losing coverage. Car insurance companies can’t determine whether you were driving illegally or legally.
Also, it shows that you may have owned an uninsured vehicle. According to some auto insurance companies, this period of being uninsured increases your risk of filing claims.
Therefore, you’ll be considered a high-risk driver. And as a high-risk driver, you could pay double the cost of auto insurance.
But car insurance companies like The General, Dairyland, and Direct Auto insurance provide affordable rates for high-risk drivers.
How do I prevent a lapse in auto insurance coverage due to nonpayment?
Contact your car insurance company and let them know you may have trouble paying your monthly payment.
Most auto insurance companies have a 30-day grace period, which is a time where you can make a late payment before your policy is canceled.
How can I avoid expensive auto insurance rates?
Auto insurance discounts are some of the best ways to bring down expensive monthly rates.
If you don’t qualify for significant auto insurance deals, try switching to liability-only insurance. The latest NAIC report shows that liability coverage is 51% cheaper than full coverage auto insurance.
Does keeping auto insurance longer make monthly rates cheaper?
Carrying auto insurance longer can make your rates more affordable over time. For example, a six-month car insurance policy you have will get cheaper the longer you have it.
Take coverage a step further and increase your coverage level. We recommend getting a medium or medium-high coverage level to make sure you have enough to cover bodily injury and property damage expenses.
What if an auto insurance company doesn’t accept your policy request?
Don’t give up. Keep shopping for auto insurance until you find a car insurance company that will accept your policy.
If you’re having trouble locating a company, go to your local DMV and ask them to help you find coverage.
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Auto Insurance Companies That Don’t Charge You for a Lapse in Coverage: The Bottom Line
Car insurance companies don’t directly charge you for a lapse in coverage, but a lapse could generate reinstatement fees with your former company.
If you decide to shop with another company, the new auto insurance company requires you to pay off the bill with your previous insurance company before starting a policy.
Now that you know more about auto insurance companies that don’t charge you for a lapse in coverage, use our free online quote tool to shop with the best insurance companies in your area.
Frequently Asked Questions
What is a lapse in auto insurance coverage?
A lapse in auto insurance coverage occurs when there is a period of time when you do not have an active auto insurance policy. This could happen if you fail to renew your policy on time or if you cancel your existing policy without immediately replacing it with a new one.
Why do some insurance companies charge for a lapse in coverage?
Insurance companies charge for a lapse in coverage because it poses a higher risk to them. When you have a lapse in coverage, it means you have been driving without insurance for a certain period of time, which increases the likelihood of accidents or other issues. To compensate for this added risk, some insurance companies charge higher premiums or fees.
Are there any cheap auto insurance companies that don’t charge for a lapse in coverage?
Yes, there are some auto insurance companies that do not charge you specifically for a lapse in coverage. These companies understand that life circumstances can sometimes lead to temporary lapses and choose not to penalize drivers for it.
Is it advisable to choose an insurance company solely based on not charging for a lapse in coverage?
While not charging for a lapse in coverage can be a positive factor to consider, it’s essential to evaluate other aspects of an insurance company as well. Factors such as coverage options, customer service, claims handling, financial stability, and overall reputation should also be taken into account when selecting an insurance provider. It’s crucial to find the right balance between affordability and quality of service.
What should I do if I have a lapse in coverage?
If you have a lapse in coverage, take the following steps:
- Act quickly: As soon as you realize the lapse, contact an insurance company to reinstate your coverage or purchase a new policy.
- Explain the situation: Provide a clear explanation for the lapse to the insurance company. If it was due to a specific circumstance, such as temporary unemployment or a financial setback, they may be more understanding.
- Compare options: While reinstating your previous policy may be an option, it’s also worth shopping around to find the best coverage and rates available to you.
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Brandon Frady
Licensed Insurance Agent
Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...
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.