Why It’s important to Renew Your Auto Insurance
Dan Levenson July 13, 2020
With so much going on, it’s easy to forget to renew your auto insurance. Yet, lapsed auto insurance can have serious consequences for your driving record and, in the long run, how much you pay for insurance in the future. Let’s look at why it’s so important to remember to renew your auto insurance policy before it expires.
How Auto Insurance Protects You
Whether you keep vehicles on the road for your business or you’re simply driving as an individual, auto insurance protects you and your vehicle. Driving can be dangerous and unpredictable weather, road conditions, and other drivers can pose hazards at any time. Most states have laws requiring drivers to be insured. If you or one of your employees is stopped and cannot show proof of insurance, he or she can face serious penalties. Just as importantly, you can face a civil lawsuit if you’re involved in an accident. There are a few major types of auto insurance.
- Liability — This is the most basic type of insurance, required by law in many states. It covers any liability towards bodily injury or property damage.
- Collision — This type of insurance is not legally required but it protects your investment in your vehicle in the event it needs repairs.
- Comprehensive — With comprehensive coverage, you are covered for a variety of circumstances such as damage caused by severe weather or the theft or vandalism of your vehicle.
What are the Consequences of an Expired Auto Insurance Policy?
What can happen if your auto insurance policy expires? The specific penalties vary from state to state. However, there are several possible outcomes, none of them pleasant.
- Fines or imprisonment. You may face a fine or even imprisonment, depending on the state and whether it’s your first offense. Your vehicle may be impounded.
- Suspension of your license. In some states, such as California, you can lose your license for a year.
- You may face a lawsuit. When an insured driver is involved in an accident, he or she is protected by liability coverage. Without insurance, you may be sued. This can have a catastrophic effect on your financial situation as lawsuits over medical expenses or property damage can add up to six or even seven figures.
Tips to Keep Your Insurance Up to Date
Your auto insurance may expire for a couple of reasons. People often simply forget to make payments. In some cases, payments may be delayed due to financial hardship. Here are some guidelines to make sure you never lose auto insurance coverage.
- Set reminders. If you miss phone calls or emails from your insurance agent, you can set up redundant reminders using Google Calendar or one of many phone apps.
- Negotiate for the best rates. Make sure you take advantage of any discounts that may be applicable. If you’re a senior, have a clean driving record, or don’t drive many miles from home you may be eligible for a discount.
- Drive carefully and responsibly. This is the best way to keep insurance rates affordable.
- Choose the right insurance company. A company that offers a variety of plans and personalized service is ideal. This helps you find the most economical and helpful policies. Additionally, when you have a good relationship with your insurance agent, they will make sure you’re kept up to date on issues such as expiring policies.
Don’t Forget to Renew Your Auto Insurance
Neglecting to renew your auto insurance is never a good idea. It’s one of those oversights that probably won’t cause you any immediate harm. The weeks will pass and you may think it’s not worth worrying about. However, the next time you’re stopped by the police or are involved in even a minor accident you’ll realize how important auto insurance really is. Make sure you have the ideal auto insurance policy for your needs. Then be sure to renew your policy in time.
Insure Your Company.com provides business insurance for your company and benefits packages for your employees. For a customized insurance quote, contact us.