Lapse
Lapse
An insurance lapse is the period where you didn't have insurance because your policy ended and you didn't have new coverage to replace it.
This can happen for reasons including: You miss a premium payment. The premium payment was not received by the due date. You do not renew the policy.
Insurance rates are generally higher for policyholders with lapsed coverage.
ways you can prevent a coverage lapse include:
-Shop for the most affordable policy for the coverages you want.
-Talk to your insurer if you’re having difficulty meeting your payments.
-Know when it’s time to renew, or set up automatic renewals.
-Make sure there’s no gap between the start and end dates of policies when you switch insurances.
It should be noted that most policies can be reinstated within the policy's grace period.
If your insurance lapses, you will no longer be covered for any claims that occur during that time. This could mean that you are responsible for paying for any damages or losses yourself. In some cases, you may also be denied coverage for future claims if you have a lapse in coverage.
To avoid a lapse in insurance, it is important to make sure that you pay your premiums on time and that you keep your policy in good standing. You should also check with your insurer to see if there are any other requirements that you need to meet to maintain your coverage.
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