Insurance Lapse Over 90 Days

Insurance Lapse Over 90 Days: What You Need to Know

Insurance is an important aspect of our lives. It provides us with financial protection against unforeseen circumstances such as accidents, natural disasters, and illnesses. However, there are times when we fail to pay our insurance premiums, resulting in a lapse in coverage. This can be a serious problem, especially if the lapse lasts for more than 90 days. In this article, we will discuss the implications of an insurance lapse over 90 days and what you need to know to avoid it.

What is an Insurance Lapse?

An insurance lapse occurs when a policyholder fails to pay their premiums on time. When this happens, the insurance company will cancel the policy, and the policyholder will no longer be covered. In most cases, the insurance company will give the policyholder a grace period of 30 days to make the payment before canceling the policy. However, if the policyholder fails to make the payment within the grace period, the policy will be canceled, and the coverage will lapse.

What Happens When Your Insurance Lapses for More Than 90 Days?

When your insurance lapses for more than 90 days, you will be considered a high-risk customer by insurance companies. This means that you will be charged higher premiums, and some insurance companies may refuse to cover you altogether. Additionally, if you are involved in an accident or experience a loss during the lapse period, you will not be covered by insurance, which means that you will have to bear the financial burden yourself.

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How to Avoid an Insurance Lapse Over 90 Days?

The best way to avoid an insurance lapse over 90 days is to make sure that you pay your premiums on time. Here are some tips to help you avoid a lapse:

1. Set Up Automatic Payments: Setting up automatic payments is one of the easiest ways to ensure that you never miss a premium payment. Most insurance companies offer this service, and it can save you time and effort.

2. Keep Track of Your Premium Due Dates: Make a note of your premium due dates and set reminders on your phone or calendar. This will help you remember to make the payment on time.

3. Make Payment in Advance: If you have the financial means, it’s a good idea to make your premium payments in advance. This way, you won’t have to worry about missing a payment in the future.

4. Notify Your Insurance Company of Any Changes: If there are any changes to your contact information or payment methods, make sure to inform your insurance company immediately. This will ensure that you receive all the necessary information and reminders.

What to Do if Your Insurance Lapses?

If your insurance lapses, the first thing you should do is contact your insurance company. They may be able to reinstate your policy if you make the payment within the grace period. However, if the lapse has lasted for more than 90 days, reinstating your policy may be difficult. In this case, you will have to look for alternative coverage options.

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Conclusion

An insurance lapse over 90 days can be a serious problem, as it can result in higher premiums and no coverage during an emergency. It’s important to make sure that you pay your premiums on time to avoid a lapse. If your insurance does lapse, contact your insurance company immediately to see if your policy can be reinstated. Remember, prevention is always better than cure, so take the necessary steps to avoid a lapse in your insurance coverage.