Car Insurance Coverage Lapses

What to Do If Your Car Insurance Coverage Lapses  

Having auto insurance can be a crucial part of driving a vehicle in Illinois. But what happens if your car insurance lapses? At Illinois Vehicle Insurance Agency, LLC (Illinois Vehicle), we know that life can get busy and sometimes, things like car insurance payments may slip through the cracks.  

Maintaining your auto insurance is important because having the minimum coverage in Illinois required is the law. That’s why we’re here to help you understand what happens if your coverage lapses, how to get car insurance after a lapse, and how you can help prevent it from happening in the first place. 

Car insurance lapses in Illinois 

So, you may be wondering, what happens if my car insurance lapses? A lapse in car insurance can mean more than just a missed payment, it may come with serious consequences. Here are some issues that may occur if your cover lapses and you drive without auto insurance:  

• Legal and financial consequences: If your insurance lapses and you're caught driving without coverage, you could face fines up to $1,000, license suspension, and your vehicle registration could be suspended, too.  
• Higher future premiums: Insurance companies may view a lapse in coverage as a sign that you're a higher risk. This could result in higher premiums if you try to get insured again.  
• Loss of benefits: Depending on your policy, some auto insurance perks like roadside assistance or rental car reimbursement may be lost if your policy lapses.  

Why does car insurance lapse? 

There are several reasons why lapses can happen. Here are some common reasons you may want to be familiar with: 

• Non-payment of premiums: In Illinois, it’s not required for insurance providers to give car insurance lapse grace periods for missed payments. Depending on your insurer, you may have a few days to a month to make your car insurance payment. Unfortunately, a missed or delayed payment may cause your policy to be canceled. 
• Missed renewal date: Some policies may have set lengths, like six months or one year. If you have a renewal payment for the next term and it’s not made, your coverage could end. Reviewing policy expiration dates may help you maintain your coverage.  

Steps to take if your car insurance coverage lapses 

If your car insurance coverage lapses, here are some things you can do to help get your coverage back:  

• Contact your agency: You can reach out to an Illinois Vehicle agent as soon as you realize there’s been a lapse. Our team can help you navigate your policy issues.  
• Review your coverage or policy: Looking at your policy and its renewal date may help you understand your payment schedule. If you need help understanding your policy, Illinois Vehicle can assist you.  
• Provide the necessary documentation: If you need to purchase a new policy, you may want to have your driver’s license and vehicle information ready. An agent may need this information to further the insurance process.  

How to avoid lapses in coverage 

If you’re worried about losing your coverage, here are some ways to help you stay covered: 

• Set reminders for payment due dates: Keeping a calendar of when your auto insurance payments are due can help you make timely payments. Setting up automatic payments can also help this process.  
• Review your policy annually: Your life can change after one year, which may mean a change in your insurance needs, too. A yearly review of your policy can help you determine if it still fits with your budget and lifestyle. 
• Update personal details: If you’re moving or purchasing a new vehicle, it may be helpful to let your insurer know promptly. Keeping your policy accurate may prevent issues between you and your insurer.  

How Illinois Vehicle can help 

Illinois Vehicle is here to help you maintain your insurance coverage. Here’s why working with us may be beneficial to you:  

• Options from multiple carriers: We work with 20+ carriers that can help you find insurance rates that align with your budget. Whether you’re looking for Illinois minimum coverage or something more robust, we can help you discuss your options. 
• Available discounts: Our carriers have various discounts you may qualify for, like bundling multiple vehicles on one policy, keeping a clean driving record, or paying your premium in full.  
• Bilingual agents: Our Spanish-bilingual agents can help you find a policy that fits your needs without a language barrier.  

Avoiding a lapse in coverage can help you stay compliant with the law and prevent extra costs. If your coverage has lapsed or you want to review your current policy, Illinois Vehicle can help you. Call us today at 630-581-4805, visit one of our convenient locations throughout Chicagoland, or get a free auto insurance quote online. 

Disclaimer:   

This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or in all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions and exclusions may apply.