The Importance Of Not Letting Your Auto Coverage Lapse

Letting your insurance lapse may seem like a trivial matter on the surface, but it's not. Not only is it illegal to drive in the state of Ohio without insurance; it can also have serious consequences that go beyond getting a ticket for driving without insurance. Here are some things you should consider before letting your policy lapse:

The Financial Consequences:

Usually, people let their insurance policy lapse because they "can't" afford to make the payment(s). If you think you can't afford to pay your insurance premiums, then you really can't afford not to pay them! Think about it...if you're in an at fault accident, and you don't have insurance to pay for the damages, you will be responsible.

Accidents that involve property damage and injuries add up quickly. And if you let your policy lapse, then you are responsible for those property damages and injuries. A judgment against you can lead to things such as garnished wages, and put other large assets such as your home in jeopardy. No one wants that. Ultimately, not paying your monthly payment now can lead to paying off a huge amount of money for the rest of your life. I don't know about you, but I'd like to keep my house.

The Legal Consequences:

As mentioned above, you can receive a judgment against you for the damages and injuries you cause to another, which sucks--but did you know that you can also have your license suspended for lack of insurance in the state of Ohio? Then what? You're on the bus, or right back in the risky situation you put yourself in, in the first place.

Future Insurance Premiums:

Did you know most insurance carriers won't even take a driver that does not have previous insurance (aside from new drivers)? Others, simply charge you much higher premiums.

Additionally, a lapse in your old policy means you will no longer qualify for the rates you were getting before.

You will likely lose discounts, including credit for longevity with your insurance company. You may also have to pay a new down payment and/or reinstatement fees. Some companies may also have a limit on the number of times you can lapse before they refuse to reinstate you.

Working your way back up to getting better rates is tough, and can take a long time. It's best to keep your policy in force if you can. Ultimately, a lapse in your auto insurance policy can be much more costly than had you simply continued to pay your premiums. If you are having trouble paying your insurance bill, talk to your Agent about ways to reduce your rates, rather than allowing a lapse to occur.

Until next time - Nicole

#perspective #outlook #newlife #insurance #ohio #columbus