Reinstating A Car Insurance Policy 

If you don’t have valid car insurance but are still driving, know that it is illegal, and you are likely to be arrested by officers. Individuals opt to cancel their auto insurance when they aren’t using the vehicle in certain instances.  

Once you begin driving again, you must be covered by a valid insurance policy. If you aren’t sure how to reinstate your canceled auto insurance, then here’s a short guide to ensure you are safe in the event of an accident. 

What Is Car Insurance Reinstatement? 

Reinstatement occurs when your policy is reinstated after your insurance company canceled it due to non-payment. The policy reinstatement is from the same insurance provider that you had previously been insured by and maybe the exact policy number as well as the amount of coverage. 

Renewing car insurance comes in two forms. The policy remains in effect in the first form, and your reinstatement will have updated effective dates.  

The second form is that your policy is as if no lapse ever occurred. Reinstating your policy without time-lapse is preferable since there’s no period when the policy did not cover you. If an accident happened when your policy was not in effect, the insurance company wouldn’t take on any claims after that point. 

How Can You Reinstate A Car Insurance Policy? 

Renewing your insurance policy is more straightforward if the coverage isn’t yet expired. However, if you’ve gone for way too long without paying your insurance payment and let your insurance coverage for your car go into lapse, the process can be more complex than simply getting caught up on late payments. 

No Coverage Lapse 

Insurance companies won’t end your policy right after your first unpaid payment. Insurers are generally legally required to inform you prior to an insurance cancellation.  

The majority of insurance companies offer 30 days of grace to allow you to keep up with your auto insurance payments. You could have to pay premiums, plus interest, based on the insurance company you choose. 

Usually, if you make a payment in the grace-time period, the insurance will be reinstated, and you won’t experience any coverage lapse. Renewing your policy will not appear on your insurance records, nor will the cancellation of your coverage.  

Your policy will remain the same, and you’ll have the same coverage limits and the same policy duration. If you want to have your policy reinstated, you need to reach out to your insurance company via phone or their website. 

You may require filling out a form. This form declares that you didn’t have an incident within grace time and will not make a claim. You could also be required to pay your insurance company a reinstatement cost to renew your car insurance policy. 

Coverage Lapse 

The insurance company will not be able to reinstate the policy if you’ve allowed the policy to lapse. A majority of insurance companies won’t reinstate a policy after you’ve reached the 30-day mark, and in this case, you’ll need to apply for a new policy.  

It means that your history of insurance will reveal a lack of coverage, resulting in increased insurance costs at a later date. Your insurance provider can renew your policy beyond the grace period. However, it is all about the policy of your company.  

If your insurance company agrees to reinstate your policy, you’ll likely be required to pay the fees you owe upfront and pay a fine before reactivating your policy. The insurance company may increase the rates you pay, too. The policy duration will be changed to reflect the reinstatement date. All of it will be mentioned on your insurance file.