What To Do If Your Car Insurance Lapsed and You Had An Accident

Having car insurance is required by law in most states. Driving without insurance can lead to fines, license suspension, and other penalties. However, life happens and there may be times when your insurance coverage lapses unintentionally.

If you get into an accident when your insurance is not active, it can be an overwhelming and stressful situation. Here is a guide on what to do if you had an accident without active car insurance coverage.

Report the Accident

The first thing you should do after an accident is stop your vehicle and make sure everyone involved is unharmed. If there are any injuries or the damage appears significant, call 911 immediately.

If the accident is minor, move your cars off the road to a safe location like a parking lot or side street. Call the police non-emergency line to file an accident report. Get the contact details and insurance information of the other driver(s). Having a police report can help determine fault later on.

Document everything you can about the accident scene – take photos of damage, skid marks, weather conditions, etc. Get contact info for any witnesses. Write down your recollection of how the accident happened as soon as possible.

File a Claim with the At-Fault Driver’s Insurer

In most states, the at-fault driver’s insurance company is responsible for covering damages, even if the other driver does not have insurance.

Contact the at-fault driver’s insurance company to begin a claim. Provide them with the accident report, photos, and your statement of what happened.

Be prepared to explain why your insurance lapsed. The adjuster may try to deny or limit your claim because you did not have active insurance at the time. Politely but firmly insist on fair compensation – having no insurance does not negate their liability for the accident.

Having experienced legal counsel can be extremely helpful during the claims process. An attorney understands insurance regulations and procedures. They can deal with aggressive adjusters and make sure you receive full compensation.

Seek Medical Attention

Even if you feel fine immediately after the accident, it’s important to get checked out by a doctor. Certain injuries like soft tissue damage, concussions, and internal trauma may not be obvious at first. Lack of prompt medical care could negatively impact any injury claims later on.

Be sure to follow all recommended treatments from your physicians. Keep documentation like medical reports, bills, and records of missed work due to the accident injuries.

Consider “Uninsured Motorist” Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage pays for damages caused by a driver with no or insufficient insurance. Required in some states, it can be added to your own policy for an additional premium.

If you had UM coverage that was still in effect when your accident occurred, contact your insurance provider to start a claim. This can provide a backup source of compensation if the at-fault driver’s insurance denies or disputes your claim.

Explore Other Options

If the at-fault driver has insufficient coverage and you did not have UM, there are other potential options:

Your credit card – Some credit card companies include rental car insurance, which may also apply if you put rental or repair charges on the card after an accident.
The at-fault driver personally – You may be able to take them to court to recover accident costs they did not pay, such as filing suit or negotiating a settlement.
Your own health/disability insurance – If you have coverage, it may help pay for medical bills related to accident injuries.
State victim compensation funds – Some states have programs that assist victims, including those hurt by uninsured drivers.

Reinstate Your Insurance Coverage

Having your insurance lapse can lead to fines, license/registration suspension, and other legal problems. Work quickly to activate a new policy. Avoid future lapses by signing up for autopay or keeping tabs on policy expiration dates.

Shop around to find the most affordable rates. Consider bundling home/auto policies or taking defensive driving for discounts. Maintaining continuous insurance coverage with a good driving record will minimize costs over time.

Learn From the Experience

Let this unfortunate incident be a lesson for the future. Never drive without insurance – it puts you at serious financial risk. Pay attention to renewal notices, set payment reminders, or enroll in autopay to prevent an accidental lapse going forward.

Keep your policy updated with sufficient liability, collision, and UM/UIM coverages. Review them annually as your life circumstances change. Proper insurance could have reduced stress and costs in dealing with your accident.

Key Takeaways

File a claim with the at-fault driver’s insurance and document accident details thoroughly.
Getting an experienced attorney can help maximize your claim payout.
Seek medical attention promptly and keep records of all treatments.
Explore options like UM coverage, credit cards, the liable driver personally, or victim compensation funds.
Quickly reinstate your insurance to avoid further penalties.
Use this as a lesson to never drive uninsured again in the future.

Having an accident without insurance can add challenges, but you still have rights to fair compensation. An attorney familiar with these situations can advise you on the best steps to recover damages. With persistence and the right help, you can reach a positive outcome.

What To Do If Auto Insurance Coverage Has Lapsed

FAQ

How do I get around my insurance lapse?

You might be able to pay your overdue payment over the phone and avoid a lapse. Many insurers offer a grace period. Typically, this grace period is a period of time in which your premiums will not increase due to a lapse in coverage. You may want to ask your insurer if you’re able to take advantage of this option.

Does lapsed insurance mean Cancelled?

Lapse of coverage is distinctly different than cancellation of an insurance policy in that lapse generally does not require notice to you, the insured, whereas cancellation generally does.

Can a lapsed insurance policy be reinstated?

If it has only been a few days since your policy has lapsed, you can likely reinstate the policy without much hassle. If it has been several months or years, you might be able to reinstate your policy, but you will likely have to go through a reinstatement process with a new application.

Can you reinstate a Cancelled car insurance policy?

If your insurer agrees to reinstate your car insurance policy after it’s been canceled, you will need to pay any outstanding premiums and other fees. You may also need to sign a no-loss statement. If your company won’t reinstate your auto policy, you’ll need to purchase a new one so you can get back on the road.