It is important for you to have continuous auto insurance coverage. You cannot afford to have a lapse in coverage as the problems that come without being covered properly can be rather difficult.
You may be interested as having an added risk associated with your name if you have a lapse in your coverage. This comes from how you are not maintaining your insurance policy as well as you should. In other words, any money you save by not being covered for a period of time will more than likely be lost due to a lapse in coverage on your end.
The total increase in your insurance rate will vary based on where you are and the severity of the issue. You could pay twice as much for coverage if you have a wreck or any other issue even you are in the middle of a lapse in coverage.
You are legally required to have auto insurance if you regularly drive and own a certain vehicle. By not having any insurance, you might be punished in some way.
You might have your license suspended if you have been driving without insurance. This suspension may be used to ensure that you actually get insurance again before you are legally allowed to drive a vehicle again.
You could also have to file a proper document proving your financial responsibility. An SR-22 form might have to be filled, for instance. This can be very frustrating and tough to handle in some of the worst cases. However, an SR-22 is often filed to show that you can actually pay off your insurance cost and could lead you into even more trouble depending on what happens with it.
There is even the risk of possibly getting into jail time. This issue might be rather substantial as you could be stuck in jail for months at a time. Every jurisdiction has its rules for what jail sentences could be passed so be cautious.
The impact of a lapse on your driving record can be rather substantial. You might end up having a penalty on your record where you are seen as someone who doesn’t really do much more managing your insurance.
You could be listed as being a high-risk driver on your insurance paper. This could be a real problem that might be dangerous and risky.
The financial concerns that come with an insurance lapse will entail more than just an increase in your insurance rate. You might also experience problems like fines for not having insurance. These might be added by the local government where you are. You might also have to pay extra fees that come with getting your license back up. This could be a real problem that must be reviewed carefully.
You must be certain when getting your auto insurance that you are capable of paying it off regularly. The risks that come with having no insurance can really be a threat in many ways.