If you are facing the issue of cancelled or lapsed auto insurance, and you have been wondering how to address it, then you finally found your solution. In this piece, you are going to be learning all you need to know about how to efficiently resolve the issue of auto insurance lapse or cancellation
Insurance coverage is useful and beneficial in all ramifications, both for organizations and individuals. From risk sharing to economic growth to capital generation the advantages of insurance are numerous.
There are various insurance policy types and packages, including but not limited to; life assurance, travel insurance, health insurance, property insurance, home insurance, family floater insurance, auto insurance, and so on.
Having an automobile either through leasing or buying is a worthy investment, and quite valuable too, therefore, getting protection for the automobile is something that should be seriously considered.
This protection comes in form of auto insurance, which offers covers and reassurance in case issues such as accidents, automobile theft, damage, vandalism, natural disasters, and so on arise. Auto insurance cover will save the holder from financial losses that may occur due to any of the aforementioned incidents happening.
Auto insurance is commonly known as motor insurance, and it refers to the contract between the automobile owner and the insurance company which involves the payment of premiums by the auto owner to the insurance company in exchange for protection of the auto from possible financial losses that may arise from damage theft, or accident to the automobile in question.
The things covered in auto insurance can include; bodily injuries, damage to the vehicle or the other party vehicle involved in the incident, damage to property, expenses of funerals or medical bills that are incurred from the accident incident.
Many factors influence the amount of premium to be paid for auto insurance. These factors include; the vehicle type, vehicle age, vehicle fuel type, the age of the insured, the declared value, and so on.
Details of the areas to be covered in the purchased insurance policy package are dependent on the minimum auto insurance coverage requirement of the auto insurance buyer state, and any other coverage package the insurance package purchaser chose to include.
Lapse/Cancelled Auto Insurance
Continuous maintenance of auto insurance cover is quite advantageous, as it assists in keeping a low premium. Often, auto insurance policies contract is normally annual, which means at the end of the tenor, a renewal of the contract is expected.
If an auto insurance policy was not renewed within the stipulated period and the date for the insurance renewal expires, such an auto insurance package is said to have lapsed, and therefore can be cancelled by the insurance company due to nonpayment.
Auto insurance lapse or cancellation is not a good development, as any case of damage or loss that occurs to the auto during this period is not covered anymore by an insurance package and would have to be covered entirely from the pocket of the one responsible for such automobile.
Auto insurance lapse is not advisable under any guise as the consequences are not so pleasant. You may have to pay a revised premium coupled with a long process of inspection before the policy can be renewed, you may have, renewal request may get rejected, penalties and fines may be incurred, an annual no-claim bonus (NCB) may be lost, and then there is also the potential trouble of traffic police.
Reinstating your Lapsed/Cancelled auto Insurance
If your auto insurance has lapsed, and you will like to reinstate it, the first step to take is to find out of your auto insurance policy renewal has a grace period. This is offered sometimes by insurance companies, whereby you have an offer of a grace period that you can renew the auto insurance without the lapse showing on your auto insurance record. This is the solution to a lapse auto insurance.
The grace period comes after the insurance has lapsed, and if you don’t make the necessary payment and renew within that period, then the auto insurance cancellation action is taken by the insurance company. Reinstating your auto insurance policy therefore would mean restoring the cancelled insurance policy.
The good news for you however it is way easier to reinstate a lapsed or cancelled insurance policy than it is to purchase a brand-new insurance policy. This is because the process of purchase would not have to be undergone again in the process of reinstatement. Coverage limits remain the same unless otherwise decided by you, no need for obtaining new quotes.
To reinstate your cancelled auto insurance policy, you need to contact your insurance company, and you should make sure you contact the right section of the company as insurance companies have different contacts for different purposes. You may contact the on their mobile app, website, and so on.
While making contact, information that you should have available in order to have a smoother auto insurance reinstatement process includes; notice of policy cancellation, policy number, the name of the drivers in your household, the policy duration and period, missed bills of payments, and the information of the concerned vehicle.
Possible actions in the process of reinstatement of your cancelled auto insurance policy depend on the policy of the insurance company, and it may include; upfront payment of owed premiums, fine payment, insurance policy rate raise, and so on.
You will also need to have a no-loss statement which would show that you did not experience any loss from the automobile during the lapse period of the auto insurance policy and will therefore not file any claim for any loss pertaining to that time period.
Making contact with your auto insurer for policy reinstatement after your auto insurance cancellation should be done as soon as possible without delay. This is because the more the delay in the reinstatement of the policy the greater the costs of the consequences, and possible penalties swell. You can reinstate your cancelled auto insurance policy more than once.
This is all you need to know about reinstating your lapsed or cancelled auto insurance policy. If you are in that situation now, then follow the process described in this piece to get your auto insurance policy reinstated without delay.