When it comes to car insurance Los Angeles residents are required to have coverage and the policy must meet certain requirements. Drivers are required to carry insurance permanently. Any time period when a driver doesn’t have coverage is called a lapse or a gap. Drivers may think they can save money by not having car insurance. Having a history of coverage lapses can make the underwriting process more difficult to get insurance in the future and can lead to higher premiums. You can learn about the vehicle insurance policies and their regulations, on this website: https://learn2drive4free.com
Legal Consequences: If you cause a vehicle accident while you don’t have insurance, there will be legal consequences. Driving and causing an accident while uninsured can be a felony. Without car insurance coverage, the driver at fault will pay for the victims’ medical bills and repairs on his or her own. Medical bills and repair costs can be very expensive.
Avoid Fines: Drivers that are caught with a gap in their insurance will get fined. These fines can be substantial. They can also receive license points. All of this combined can make any future premiums expensive since the driver will have a history of traffic violations and lapses.
Avoid the High-Risk Category: Companies will ask about past coverage when looking at a person’s insurability profile. When shopping for car insurance Los Angeles residents with recent coverage lapses will automatically be considered high risk and need to pay more. Insurance companies can also ask a previous insurer about payment history. A company can decide to cancel the policy if there are several missed payments.
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What to Do if You Have a Lapse
It’s important to avoid a lapse in coverage if you can. Car insurance should be high on your priority list and you should do what you can to make your payment within your policy’s grace period. Shop for lower rates, reduce coverage, or speak to your agent in order to find ways to save on your policy if money is an issue. If you don’t have a car for a while then you can be listed as a driver on a family member’s policy. If you are in between vehicles then carry insurance on your old vehicle until you repair your vehicle or make a new purchase. There are two options that can help you solve the lapse quickly if you have one. Ask to be reinstated with your current company. If you have had a good standing and haven’t had multiple claims then you may be reinstated. You can also ask to be listed as a driver on a friend or family member’s policy. This is a good option for someone who doesn’t have a vehicle. If you are listed as a driver on an insurance policy then you won’t be considered high risk when searching for your own policy later.
Learn more about the different types of vehicle insurances, their differences and the insurance gaps, on this website: www.cartoolexpress.com
