Car Insurance Coverage Lapses

Maintaining Coverage After Lapses in Texas and Nevada

At Agencia de Seguros de Accesso, LLC and Access Insurance Agency of Nevada, LLC (A Abana), we understand that bills pile up and addresses change, which may lead to forgetting your auto insurance payments. If this happens, you may have to deal with an auto insurance lapse.

For states like Texas and Nevada, having a specific level of car insurance when you’re driving is the law, so it may be crucial to avoid a coverage lapse. Here, we’ll walk you through what happens if your coverage lapses, how to fix it, and how A Abana can help you stay legally compliant.

Why does car insurance lapse?

So, what is a lapse in auto insurance coverage and why does it happen? A lapse in coverage usually means that there has been a pause or cancellation in your auto insurance policy, typically for a few different reasons.

A common reason for car insurance lapses is not making your auto insurance payments. While some carriers offer a short grace period, others may cancel your policy the moment a payment doesn’t happen. In Nevada, there’s no grace period for missing your auto insurance payment, so missing once may lead to an immediate coverage lapse.

If you have car insurance but are looking for a better rate, you may be looking to switch insurers. Trying to get a better rate is smart, but you may accidentally create a coverage gap during the switch. That’s where A Abana can help. We can help you get a new policy which may help you avoid a lapse in your coverage.

What happens if my car insurance coverage lapses?

If your car insurance lapses, even for a day, you may find yourself driving while uninsured. In Texas and Nevada, being caught while driving without insurance can lead to serious consequences. Here are some problems that may occur if your coverage lapses:

Legal and financial consequences: In Texas and Nevada, you’re required to carry minimum liability insurance. If you’re caught driving without insurance, you could face fines, license suspension, or even vehicle impoundment. In Texas, the state uses a program like TexasSure, an automatic system that checks if a vehicle has active insurance, which may lead to ticket if you’re uninsured.
Grace period issues: In both states, there’s no law that requires auto insurance companies to offer grace periods. Depending on your insurer, you may get a grace period for not making payments between three days or one month. It may be important to check with your insurer to see if you get a grace period, so you’re not caught driving uninsured.
Higher premiums: Even after you get coverage again, insurers may see you as a higher risk if you’ve had a prior lapse. This may lead to having more expensive premiums.

Steps to take if your car insurance coverage lapses

Even if you’re trying to make your payments on time, things can happen. If your car insurance lapses, here are some steps you can take that may help you:

Contact your agency: By calling A Abana, we can help you understand your options or assist you with updating your policy.
Shop around rates: After a lapse, we can compare rates from multiple carriers and help you find the best rate for your budget.
Provide necessary documentation: If you’re contacting an agent, you may want to have your driver’s license, vehicle registration, and proof of prior insurance ready. Having proper documents prepared may help you with your insurance process.

How to avoid lapses in coverage

If you’re worried about your coverage lapsing, here are some things you can do to help prevent this issue:

Set reminders for due dates: You may want to use a calendar to help you remember your due dates. Keeping track of when your payments are due can help you avoid lapses.
Set up automatic payments: Automatic payments can help you pay your dues on time without needing reminders.
Update changes promptly: New address? New car? It may be important to let your insurer know to help avoid coverage problems.

Working with A Abana

A Abana can help you find a policy that matches your needs and budget. Here are some ways our agents can assist you:

Offering options from our carriers: We work with multiple carriers to help you find an insurance rate that works for you. Our agents are here to help you understand your needs and show you what options are available to you.
Discounts to help reduce costs: Many of our carriers can offer discounts you may be eligible for. These discounts may include things like safe driving, bundling multiple vehicles on one policy, or paying your premium in full.
Speaking with bilingual agents: Our experienced team, including Spanish-bilingual agents, can help you find insurance that fits your needs without a language barrier.

A lapse in car insurance coverage can be stressful, but it’s something you can help prevent. By staying on top of payments and working with a knowledge agency like A Abana, you may be able to better navigate situations like coverage lapses.

Looking for car insurance? Call us today at 214-764-8868, get a quote online, or stop by one of our locations in Texas or Nevada. Let us help you find an auto insurance policy that aligns with your budget and lifestyle.

Disclaimer:

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