Insurance companies prefer working with clients that maintained continuous coverage. Clients who let their policy expire or forget paying premiums are considered high-risk. Policyholders will pay more expensive future premiums as a result of their negligence.

There are many reasons why a person may cause a coverage lapse. The most common reason is forgetting to pay the premiums on time. This also happens when the driver changes the carrier, but he does not synchronize the expiration date of the older policy with the start date of the new coverage.

When discovering a coverage lapse, it is important to act quickly. The more time passes, the harder and more expensive it becomes to be reinstated. The procedure for reinstating coverage differs for each carrier. Some companies may renew the coverage, while others will ask the client to reapply for auto insurance and basically, start a new coverage. Some companies may require the client to apply for electronic payments, in order to avoid missing payments in the future.

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