{"id":1024,"date":"2023-05-22T20:27:00","date_gmt":"2023-05-22T20:27:00","guid":{"rendered":"https:\/\/www.sr22adviser.com\/guidance-and-tips\/?p=1024"},"modified":"2023-05-19T20:28:36","modified_gmt":"2023-05-19T20:28:36","slug":"how-a-lapse-in-coverage-affects-sr-22-insurance-rates","status":"publish","type":"post","link":"https:\/\/www.sr22adviser.com\/guidance-and-tips\/insurance-facts\/how-a-lapse-in-coverage-affects-sr-22-insurance-rates\/","title":{"rendered":"Will a Lapse in SR-22 Affect My Insurance Rates?\u00a0"},"content":{"rendered":"
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If you\u2019ve been convicted of a DUI or DWI, then you know how difficult it can be to get <\/span>SR-22 insurance<\/span><\/a>. Those who are considered high-risk drivers may have trouble getting coverage, and if they do, their insurance premiums will be higher than they were before.<\/span>\u00a0<\/span><\/p>\n

But what if you lapse on your coverage? How does that affect how much you must pay? To discover the answer, keep reading to learn how a lapse in SR-22 affects insurance rates!<\/span>\u00a0<\/span><\/p>\n

Will a Lapse in SR-22 Insurance Drive Up My Rates?<\/span><\/b>\u00a0<\/span><\/h2>\n

A lapse in SR-22 coverage will drive up your rates. You will need to get new insurance quotes, and a lapse, combined with your previous conviction, means those quotes will be very high.<\/span>\u00a0<\/span><\/p>\n

To better understand how a lapse in SR-22 affects insurance rates, it\u2019s important to know that paying for coverage from month to month means you are effectively renewing a contract each month. This is why you can switch carriers whenever you want, but it also means that if you miss a payment, your carrier may drop your coverage altogether.<\/span>\u00a0<\/span><\/p>\n

When this happens, you will need to get a new quote from the old carrier or find a different one, and both will know about your previous failure to pay. That means if they are willing to provide coverage, it will be at <\/span>a higher price<\/span><\/a> than it was before.<\/span>\u00a0<\/span><\/p>\n

Things That May Cause Your Insurance To Lapse<\/span><\/b>\u00a0<\/span><\/h2>\n

Now you know how a lapse in your coverage can lead to an increase in the premium you must pay. Before we review some of the different ways such a lapse can cost you a lot of money, it\u2019s important to review the different ways you can lose your automobile coverage.<\/span>\u00a0<\/span><\/p>\n

By learning more about each of these possible ways to lose coverage, you can better learn how to avoid such an expensive outcome.<\/span>\u00a0<\/span><\/p>\n

Failure To Make a Payment<\/span><\/b>\u00a0<\/span><\/h3>\n

The most obvious way to lose your insurance is by failing to make a payment. Usually, carriers are willing to forgive the occasional late payment and will settle for charging you a late payment fee. However, if you are frequently late in paying your bill, you might get dropped. If you already have an SR-22, it will be much more difficult for you now to find a carrier offering affordable rates.<\/span>\u00a0<\/span><\/p>\n

Late Payment<\/span><\/b>\u00a0<\/span><\/h3>\n

This next way to lose coverage is related to the first one: making late payments. Most carriers offer a grace period that lets customers make late payments and still retain an active policy. But if you make a late payment outside of that grace period, it gives your carrier all the excuse they need to drop your coverage.<\/span>\u00a0<\/span><\/p>\n

Dropped by Insurance Carrier<\/span><\/b>\u00a0<\/span><\/h3>\n

Here\u2019s one that often takes drivers by surprise: Your carrier can drop you at almost any time for a wide variety of reasons. For example, they might conduct a risk assessment and drop you, especially if you are convicted of a DUI or DWI. But carriers can even drop you after you make a claim. That\u2019s why it\u2019s important to always shop around and understand your options.<\/span>\u00a0<\/span><\/p>\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/div>\n\n

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