Warning! Letting Your Insurance Policy Lapse Could Cost You

Three Auto Insurance Facts That Might Surprise You

Even savvy car insurance customers might not be aware of all the little-known facts about car insurance claims and coverage.

  1. Your insurance policy will probably cover you while you are in Canada. Driving in Canada is rarely discussed when purchasing auto insurance. Thankfully though, most insurance companies extend your same policy’s coverage while north of the border. Contact your insurer well in advance so they can give you a Canadian insurance card that complies with their regulations.

 

  1. Your insurance policy will probably NOT cover you in Mexico. However, some companies will allow your policy to cover you up to a certain number of miles even after venturing beyond the border, but you definitely need to check first as this varies from insurer to insurer. Additionally, if you need to drive into Mexico more than your insurance company will allow, often companies will have an endorsement you can add to do so.

 

  1. Rear-end accidents are not automatically charged to the person in back. Many people believe when a ‘back-end’ or rear accident happens, it’s always the fault of the person in the back. While this might be true in the majority of cases, it’s not always true. What if there were a person backing up in the street and hit the front end of someone who was parked or completely stopped?

When it comes to insurance, ignorance certainly isn’t bliss. In situations like these, you’ll often realize the implications of your insurance choices or lack of knowledge about your auto insurance far too late and only after something happens.


Warning! Letting Your Policy Lapse Could Cost You

We’ve all had moments when we kick ourselves for forgetting something. You get home from the market and realize you’ve forgotten one ingredient for dinner. You’ve forgotten your sister’s birthday or the annual company picnic. Normally, you can recover from these momentary memory lapses, but no matter what, don’t forget to pay your insurance premium on time! That’s one lapse that could cost you.

Most home, auto, and PC policies contain no grace period. Even if you’re a single day late, the insurance company could choose not to accept your payment and cancel your insurance policy. In most states, it’s illegal to be uninsured. In addition to possible legal fees, there are other repercussions.

The Risks of a Lapsed Policy

Whether a lapse is intentional or not, it’s not worth the risk. Any lapse in an insurance policy can place you in a much higher risk bracket, especially if it’s been 30 days or longer. Once you reapply for

November 6th, 2014 by Lightship Insurance