When you’ve had an accident, and your insurance company says they’ll pay 50% of the costs, you know that feeling? No problem, you can still drive with confidence, knowing that your insurance company appreciates your good driving record and your loyalty to them. However, the moment you mention that you have a lapse in coverage, they will tell you that they won’t pay any costs until your accident was their fault. It’s not true. Your insurance company is just trying to make money off of you. They know that we all seek to be safe and secure in times of grief and anxiety. So, when you find yourself in an accident, and you have a lapse in coverage, they will tell you that you’re lucky because they would only pay as much as you were at fault.
What is a lapse in coverage?
A lapse in coverage is when you have a coverage gap that gets filled in by another person’s fault. So, for example, if you are in an accident and your at-fault party is driving, 29 companies will pay only for the damage caused by you. Typically, a lapse in coverage is when you have a gap of 30 days or more between the time you have insurance and need the coverage. So, for example, if you have insurance for August, but you don’t need it until September 1, your coverage gap would be considered a “lapse in coverage.”
A lapse in coverage?
When you have an accident and have no insurance, the at-fault party’s insurance company will pay the total costs of your repair. However, if someone else is at fault, the at-fault party’s insurance company will pay some of the cost. However, your insurance company wants to make sure that you have adequate coverage to pay all expenses.
How much will they pay?
Your insurance company will usually try to show you a quote that offers you the most available coverage options. However, they often won’t quote you a price that shows you all of the options available. Instead, they will give you a quote that offers you the cheapest option. So, for example, if you have a $500 deductible, your insurance company might provide you a quote that shows you have $200 in coverage. However, the actual coverage amount is only $297.50.
Is a lapse in coverage the same as a violation of your insurance policy?
No. While most insurance companies will credit you for the amount of your violation if you let them know in writing, some will charge you a penalty even if they don’t know you have a breach. Some companies also allow you to file a complaint with the government if you think your insurance company violates your rights.
How to tell if your insurance company knows you have a lapse in coverage
If you are insured on the same policy as your car, you can check to see if another party’s accident has been reported to the insurance company. If you find that your insurance company has been notified, they must be aware of your lapse in coverage. However, they might be keeping quiet about it because they don’t want to be responsible for paying you a claim.
Even though your insurance company wants to help, they won’t until you let them know when your insurance lapses. When you have an accident and have no insurance, the at-fault party’s insurance company will pay the total costs of your repair. This is why you must check your policy and make sure that you are up-to-date on your insurance details. The insurance company knows you have a lapse in coverage, and you can check the “Report a problem” section on your policy about their policies on uninsured drivers.