Last Updated on March 22, 2018 by Jason Mason
The importance of getting an insurance policy cannot be overemphasized. It is mandatory, required by law, with consequences and penalties, depending on the circumstances. It is required for anticipatory reasons: when you incur damage in an event of a mishap or accident, the insurance coverage can answer for your liabilities. It also manages to keep your savings intact. If you get involved in an accident without insurance, it can wipe out your bank account and attach your properties if you do not have enough money to pay for damages.
An accident is called such because it is unexpected. Anything can happen during the time when your policy lapses and before it is reinstated. Pay your premium as soon as you can. You will not like the consequences of an unpaid premium: Driver’s license suspension, vehicle registration suspension, reinstatement penalties, fines and an SR-22, which is a certificate of financial responsibility filing requirement. What is a SR-22? It is a guarantee of insurance that you need to procure from your insurance company. You need it when you commit violations, which includes non-procurement of insurance coverage—which is driving without insurance.
Reinstatement does not mean procuring a new insurance coverage. It is an extension of your old policy. To reinstate your policy, call up your provider regarding your intention of continuing your coverage and then pay the premium. Depending on the terms and conditions of your insurance, the period that lapse may be covered as long as your insurance company allows it upon compliance with their requirements like writing or calling them and paying the premium within a specified period of time.
Move on, find another
Everybody hates rejection. Especially when it comes to insurance policies. You might be rejected when you are considered a “high-risk driver.” The latter means you have incurred serious traffic violations which will lower your chance of acquiring auto insurance at a low price. When this happens, it’s time to look to other insurance companies. However, you run the risk of paying a higher premium because of your status as a high-risk driver.
Your state’s automobile insurance plan
If nobody will cover you or if you find the insurance policies being offered to you as expensive, you can try your state’s automobile insurance plan. This is a state program which allows drivers labeled as “high-risk” to be able to get the minimum required coverage.
If you are prone to forgetting to pay your bills, most likely you will forget to pay your insurance premium at the stated dates. Why not try utilizing automatic payment options? If your insurance provider allows it, you can have your debit card, credit card, your bank account debited or charged automatically. Convenient and easy, right? Just make sure you do not max out your credit card or your debit card and bank account has sufficient funds.