The Complicated World of Insurance Made SimpleThe Complicated World of Insurance Made Simple


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The Complicated World of Insurance Made Simple

When I bought my first home, I had a real estate agent lead me through the entire home-buying process. This made it simple and easy for me. However, when it came time to choose a homeowners insurance policy, I became very confused about what made up a good policy. I started by doing a lot of online research into what homeowners insurance features were needed in my area and then finally called an agent who led me step-by-step through choosing the policy that was best for me and my home. I learned a lot during my research and time spent talking to my agent. I have also learned a lot about other types of insurance over the years, so I thought I would start a helpful blog all about insurance. I enjoy helping others, so come back often for new tips!

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Why You Should Never Let Your SR-22 Policy Lapse

When you incur too many driving violations or one major one, such as a DUI, you might find out that you need SR-22 insurance. SR-22 is an insurance designed for high-risk drivers, and a person that needs it must get it to avoid the DMV suspending their license. If you need this type of insurance, it is important to understand the risks of allowing the policy to lapse. Here are several things you should understand about a lapse in coverage with an SR-22 insurance policy.

The DMV will suspend your license

As soon as a lapse in your policy occurs, your insurance company will inform the DMV that you no longer have coverage. When the DMV receives this notification, they will suspend your license. They may give you a short amount of time to regain coverage, but this is typically only a week or two. If you want to avoid having a suspended license, you will need to find a new policy quickly.

You might have to pay a higher rate for coverage

The second thing to know is that anytime a person has a lapse in insurance coverage, the insurance company might charge a higher rate for the person to get a new policy. Insurance companies view lapses as risks, and higher risk increases premiums on insurance. If you want to avoid paying even more for the policy, you will need to avoid lapses in your coverage.

Your time requirement will start over

The worst effect of a lapse in SR-22 insurance coverage is that it lengthens the time you need the coverage. When a person needs SR-22 insurance, they are usually required to have it for three years. Did you know, though, that this three-year period refers to a consecutive three-year period? In other words, you must have the coverage for three complete years.

If a lapse occurs at any time, your three-year requirement starts over. For example, suppose you forgot to pay your bill after having two years of consecutive SR-22 coverage. When you purchase a new policy, you will now need to have it for another three years, because you did not have it consecutively for the three-year period.

If you currently need SR-22 coverage and have limited time to get it, call an auto insurance company right away to find out if they offer this type of insurance coverage and the costs for the policy.