Letting your insurance lapse (especially now) is NEVER a good idea. Insurance is something that we often take for granted, until we find ourselves in a situation where we desperately need it. Letting your insurance lapse can have dire consequences and leave you vulnerable to a range of risks.
In a hard insurance market (like we are right now), letting your insurance lapse is especially risky. Curious about what a “hard market” is? Check this out.
But first, what does it mean to let your insurance lapse?
Lapse in insurance: A period of time when you do not have insurance coverage, usually because payments were not made and/or you were dropped by your insurance company.
5 Reasons You Cannot Let Your Insurance Lapse
Here are some compelling reasons why you should never let your insurance coverage expire – ESPECIALLY in a hard market.
1. Because of the hard insurance market we are currently in, we might not be able to re-instate you if your insurance lapses. Insurance companies are really clamping down on the people they will write and the types of insurance they will offer. If you let your insurance lapse because of non-payment, there’s a good chance they won’t let us reinstate you. Don’t risk it. Don’t let your insurance lapse.
2. We might not be able to find you another insurance option that’s comparable to what you previously had. In this tough market, we might not be able to find a new insurance carrier because many carriers are pulling a full hard stop on issuing any new policies. Unfortunately, if your current insurance carrier won’t take you back, another insurance carrier might not take you either.
3. In many cases, insurance is a legal requirement. For instance, most states mandate drivers to carry auto insurance. Failing to maintain the required coverage can result in hefty fines, license suspension, or even legal trouble. By keeping your insurance active, you not only stay on the right side of the law but also avoid unnecessary penalties.
4. Don’t leave your property and possessions unprotected. Homeowners and renters insurance safeguard your property and possessions against damage or loss. From fire and theft to natural disasters, these policies provide financial support to help you rebuild and replace your belongings. Without insurance, you risk losing everything you’ve worked so hard for, leaving you in a difficult and potentially devastating situation.
5. Protect your peace of mind. Life is unpredictable, and unforeseen events can turn your world upside down. Having insurance coverage offers peace of mind, knowing that you have a safety net to fall back on when things go wrong. It allows you to focus on living your life without constantly worrying about the financial implications of unexpected circumstances. Having a lapse in coverage means that you are no longer protected.
Want to avoid a lapse in coverage? Sign up for EFT!
Never miss a payment by signing up for automatic bill pay! We always recommend signing up for EFT to make paying your bill hassle-free.
Recurring EFT (electronic funds transfer) is a payment method where automatic withdrawals are made from your checking or savings account to pay for your insurance premium on the date of your choice.