Car Insurance with a Lapse in Coverage
How to get car insurance after your coverage lapses
If you're looking for affordable auto insurance, it's important to keep your coverage active. The average price difference between an insurance policy for a driver with five consecutive years of coverage history and a driver with no recent auto insurance record is $218 per year.
The reason rates rise after insurance policy expiration is that car insurance companies see additional risk in covering clients who have allowed their insurance to lapse. To an insurer, you've shown either an inability to maintain your coverage, or you've chosen to drive while uninsured. Still, some options do exist for finding reasonable car insurance after a lapse in coverage.Â
Let The Zebra help you find car insurance after a lapse!
Car insurance lapse defined
A lapse in auto insurance coverage means you have been uninsured for a certain period of time. This can typically range from one day to 60 days or more. A lapse in auto insurance coverage can have a number of negative ramifications, including higher auto insurance premiums, driver's license suspension, tickets or a lack of coverage in the event of an accident.Â
An auto insurance policy could lapse for one the below reasons:
- Missed premium payment(s)
- Policy non-renewal
- Policy cancellation (by the insurance company)
Is there a grace period after a car insurance coverage lapse?
This varies by the insurance company and is a good question to ask when you're shopping for a policy. Depending on the duration of the lapse — and the reason for the interruption — the insurance company might reinstate the policy. For example, if your policy expired by a single day, your insurance might decide to reinstate it. If a policy is canceled because of a missed payment that is rectified soon thereafter, the company will likely forgive the error and reinstate the policy — but for a fee).
Car insurance after a coverage lapse
There are a few reasons getting car insurance after a lapse in coverage might be expensive and difficult. The primary reason is the additional risk posed by insuring a previously uninsured driver. Unless you’re a newly licensed driver, having a driving history without an insurance history is considered a sign of potential risk — similar to having a bad driving record. Below are average auto insurance rates based on the duration of car insurance history and common coverage levels.
| Insurance History Groups | Avg. Annual Premium |
|---|---|
| None | $1,934 |
| 6 Months | $1,853 |
| 1 Year | $1,842 |
| 3 Years | $1,808 |
| 5 Years | $1,789 |
The longer you carry car insurance and the higher coverage level you maintain, the more affordable your rates will be. A history of minimal car insurance coverage is an indicator of risk, leading to more expensive rates. Historical data shows drivers who carry lower levels of coverage tend to file more claims than do drivers with higher liability limits.
By maintaining higher levels of coverage for five years, you can save $264 per year on your next insurance policy.
Another thing to keep in mind is eligibility. Certain companies will not sell a policy to drivers who haven't maintained continuous coverage for a certain duration. This relates to the risk associated with limited-history insurance clients. For instance, Farmers will not write a policy for a driver without continuous coverage for at least six months. This does not include newly licensed drivers.
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
| Insurance History | Avg. Annual Premium |
|---|---|
| 5 Years with State Minimum BI Limit | $1,836 |
| 5 Years with 50-100 BI Limit | $1,742 |
| 5 Years with 100-300 BI Limit | $1,711 |
Can you reinstate an insurance policy to avoid a lapse in coverage?
Whether you can avoid a lapse in coverage by reinstating coverage depends on the insurance company's regulations. If your insurer cancels your policy due to non-payment, you might be able to reinstate your policy if you make a payment and pay a reinstatement fee. Reinstating a canceled policy can help you avoid a lapse in coverage.
If the period of time of a lapse exceeds a few days, the ramifications may be more serious. Some insurance companies will allow policy reinstatement after a longer period after this time frame. Others might issue an entirely new policy. Other providers won’t reinstate the policy, forcing the driver to look elsewhere for insurance.
If you learn your policy has been canceled, call your insurance company or sign in to your account online to learn more about recommended next steps.Â
Cheapest car insurance companies after a lapse in coverage
Now that we’ve outlined why it's difficult to find car insurance after a lapse in coverage, let’s look at rates from popular providers. Using the methodology outlined here, we determined USAA and State Farm to be the cheapest companies for a driver with a lapse in coverage or limited insurance history.
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1,482 |
| State Farm | $1,569 |
| GEICO | $1,676 |
| Nationwide | $1,754 |
| Progressive | $2,046 |
| Farmers | $2,279 |
| Allstate | $2,678 |
How to handle a car accident after a coverage lapse
If you’ve been in a car accident and later realize your car insurance has lapsed, there’s no easy fix. Let’s review a few example scenarios and feel free to ask us if you have further questions.
If your coverage lapsed on Tuesday, and you had an accident on Thursday, your insurance company may allow you to reinstate your policy, but it’s very unlikely they will provide coverage for your accident. If you lie and say the accident happened after you were insured again, you’re committing insurance fraud. Having a reinstated policy and immediately filing a claim will be suspicious to your insurance company’s claims department and they will most likely investigate it.
Your lack of insurance should not affect your ability to receive compensation after a not-at-fault accident. If it is clearly the other driver’s fault, you should contact their insurance company and begin the claims process.
The only people who can determine fault are claims adjusters. So, if responsibility for the incident is not cut and dry, not having a claims adjuster on your side can be difficult. Insurance companies are going to try to avoid claims. Without an insurance company to back you, you could be stuck footing the bill.
If this happens to you, your best bet is to seek legal advice.
This is the worst-case scenario. If you’re uninsured and cause property or bodily injury damage to someone else, you’re responsible for those damages. If you’re unable to pay, you can have your assets seized and face legal action. Depending on the nature of the accident, you can also be ticketed, have your license suspended, or have your vehicle towed.
Bottom line: if you’re currently uninsured, get insurance quotes now. If it’s been a few days since your insurance lapsed, your best bet is to call your current provider and see if you can get your coverage reinstated. If you’re requiring an entirely new insurance quote, enter your ZIP code below to see rates from over a hundred local and national providers across the U.S.
Make an informed decision: compare insurance rates today.
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RECENT QUESTIONS
Other people are also asking...
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.