Accidentally let my car insurance lapse, what now?

Insurance Forum Auto Insurance
1

I already know this was dumb, no need to tell me that—just trying to figure out what happens next.

I bought a new car about a year ago, and somehow never actually got insurance on it. The thing is, I still pay for insurance on my old car, even though I don’t drive it anymore. Does that help at all, or am I totally screwed?

I have been driving the new car, so miles have gone up since I bought it. I don’t know exactly how insurance works in this situation, and I’m worried about what happens when I go to fix this. Will there be fines? A big rate hike? What should I do first?

2

Just call your insurance company and add the new car to your policy. They’ll tell you what the new rate will be. There’s not much else you can do—just get it insured ASAP and stop driving it until you do.

3

@Mikel
That’s the plan. Anything I should expect, like fines because the car is registered but wasn’t insured?

4

Laine said:
@Mikel
That’s the plan. Anything I should expect, like fines because the car is registered but wasn’t insured?

If the state hasn’t fined you already, they probably don’t automatically verify insurance coverage. Just get the car insured now and move forward.

5

  1. Call your insurance company

  2. Add the car

  3. Move on with life

6

It’s kind of surprising that the car wasn’t insured before it was registered. Usually, proof of insurance is required when registering a vehicle, whether you bought it from a dealer or a private seller. Some insurance companies give you a grace period (usually up to 30 days) to add a new car, so it’s worth checking with your insurer to see if that applies.

Call your insurance company, ask why the new car isn’t on the policy, and see if they can backdate coverage. They might be able to add it retroactively with a signed no-loss affidavit, depending on their policies.

7

It’s not a great situation, but here’s what you need to know:

  1. Insurance usually follows the car, not the driver, so if your new car wasn’t on the policy, it probably wasn’t covered.

  2. A lapse in coverage can make future rates go up, and some companies might see it as a higher risk.

  3. Some policies have a grace period for adding new cars, but a year is a long time—call your provider and ask.

Your best move is to call the insurance company ASAP, be upfront about the situation, and get the new car covered immediately.