Life can get busy, and sometimes things slip through the cracks. If you’ve ever missed a payment or let your auto insurance coverage lapse, you’re not alone. But it’s important to know that a lapse in coverage can have serious consequences. At AEI Insurance Brokerage, we want to help you understand what happens when your auto insurance lapses and how we can assist you in finding the right coverage.

What Is a Lapse in Coverage?

A lapse in coverage occurs when you go without auto insurance for any period of time, even if it’s just a day. This can happen if you forget to renew your policy, miss a payment, or decide to cancel your insurance without getting a new policy in place.

How Do Insurance Companies View a Lapse in Coverage?

1. Higher Premiums: One of the most immediate consequences of a lapse in coverage is that you may end up paying higher premiums when you get a new policy. Insurance companies see a lapse as a risk factor, and they may charge you more because of it.
2. Difficulty Finding Coverage: Some insurance companies may be hesitant to offer you a policy if you’ve had a lapse in coverage, especially if it was for an extended period. This can make it more challenging to find affordable insurance.
3. Penalties and Fines: In many states, including New Jersey, it’s illegal to drive without insurance. If you’re caught driving during a lapse, you could face fines, penalties, or even the suspension of your driver’s license.
4. Limited Coverage Options: After a lapse, you might only qualify for basic coverage, which might not offer the protection you need. This could leave you vulnerable in the event of an accident.

What Should You Do If You Have a Lapse in Coverage?

1. Act Quickly: If you realize that your insurance has lapsed, it’s important to get coverage as soon as possible. The longer you go without insurance, the harder it may be to find a policy at a reasonable rate.
2. Shop Around: It’s a good idea to compare different insurance providers to find the best rates. At AEI Insurance Brokerage, we can help you shop around and find the right policy that fits your needs and budget.
3. Consider Risk Management: At AEI Insurance Brokerage, we focus on risk management. This means we work with you to understand your specific needs and help you find coverage that protects you without costing more than necessary.

How AEI Insurance Brokerage Can Help

If you’ve had a lapse in auto insurance coverage, don’t worry—AEI Insurance Brokerage is here to help. We understand the challenges you might be facing and can assist you in finding a new policy that meets your needs. Whether you’re looking for basic coverage or something more comprehensive, we’re here to guide you through the process and make sure you’re properly protected.

A lapse in auto insurance coverage can lead to higher premiums, difficulty finding coverage, and legal penalties. But with the right help, you can get back on track and find the coverage you need. At AEI Insurance Brokerage, we’re committed to helping you manage your risks and find the best insurance solutions. If you’ve had a lapse in coverage or are shopping for a new policy, contact us today. We’re here to support you, no matter where you are in the nation.