Final Up to date on February 15, 2022
It’s necessary to know when your automotive insurance coverage expires.
In case you don’t know when your automotive insurance coverage coverage expires, you possibly can mistakenly let your automotive insurance coverage lapse between insurance policies, which may make you a high-risk driver.
Insurance coverage insurance policies usually final 6 months to 12 months. Most insurers routinely renew your coverage earlier than it’s set to run out. Nevertheless, in case you let your automotive insurance coverage expire, or in case you cancel your automotive insurance coverage, then it would finish at 12:01 AM on the date you finish protection.
Right this moment, we’re explaining all the pieces you must find out about when automotive insurance coverage insurance policies expire, together with the way it impacts future premiums and your present coverage.
Desk of Contents:
Automobile Insurance coverage Insurance policies Expire at 12:01 AM on the Listed Date
Most automotive insurance coverage insurance policies expire at 12:01 AM on the listed date. This date could also be listed because the cancellation date or the date of expiry in your automotive insurance coverage documentation.
Let’s say you purchase a 6-month automotive insurance coverage coverage from GEICO on March 1. That automotive insurance coverage coverage ought to expire on September 1.
Nevertheless, your automotive insurance coverage coverage doesn’t really cowl you on September 1: it covers you for under one minute previous midnight on September 1.
In different phrases, you’re paying for a full day’s value of insurance coverage when, in actuality, you solely get one minute of insurance coverage.
In case you get into an accident at 12:30 AM on the date your automotive insurance coverage expires, then your insurer will deny your declare. Technically, you didn’t have protection on the time of the accident, and your insurer doesn’t must cowl the prices of the accident.
How you can Finish a Automobile Insurance coverage Coverage
Most automotive insurance coverage firms routinely renew your coverage each 6 or 12 months, relying in your plan. When it comes time to resume your coverage, your insurer will evaluation your driving historical past, test for any further modifications, then alter charges primarily based on this data.
In case you select to routinely renew your coverage, then your automotive insurance coverage will routinely be renewed on the listed date. Your outdated coverage ends at 12:01 AM on the listed date, and your new coverage begins at 12:01 AM on that very same date. You haven’t any lapse in protection, and your automotive insurance coverage protection continues with the identical firm.
Nevertheless, many drivers change insurance coverage firms as a consequence of worth or protection. You would possibly change to a brand new supplier as a result of they provide cheaper charges in your space.
Or, you would possibly let your automotive insurance coverage expire since you not plan to drive. You’re touring abroad, for instance, and not must drive.
Generally, your insurer will finish your automotive insurance coverage coverage. In case you have two or extra accidents since your final renewal, for instance, then your insurer might put your coverage into non-renewal, which implies you must discover a new insurance coverage supplier after the listed date.
In all of those conditions, your automotive insurance coverage expiration date turns into necessary, and that’s why you must think about the 12:01 AM rule.
Contact your Insurer to Confirm Expiration Date
Every state has its personal distinctive insurance coverage legal guidelines. Every insurance coverage firm additionally has its personal distinctive insurance policies.
Due to these variations, it’s necessary to contact your insurer to confirm the expiration date of your coverage.
Some insurers have a grace interval, for instance, and can prolong protection as much as 2 weeks past the tip date of your coverage. Different states require insurers to supply some kind of grace interval even after non-payment.
In different phrases, your insurance coverage coverage won’t finish at precisely 12:01 AM. In case you’re involved about your insurance coverage expiration date, we advocate contacting your insurer to confirm the tip date and time.
How you can Keep away from a Lapse in Protection
A lapse in insurance coverage protection is harmful. In case you go with out automotive insurance coverage for a day, per week, and even an hour, then it’s thought of a lapse in protection.
When your automotive insurance coverage protection lapses, your insurer sends a letter to your state’s DMV (or the equal company) warning that you just not have automotive insurance coverage. In case you don’t have one other coverage, then the DMV might cancel your automotive registration till you present proof of insurance coverage.
If you’re unable to supply proof of insurance coverage to the DMV, then your automotive insurance coverage has lapsed. Chances are you’ll want to supply proof of insurance coverage and pay a registration reinstatement price. Some states require an SR-22 certificates. Others cost further penalties.
Past DMV penalties, drivers may additionally trigger an accident whereas insurance coverage has lapsed, and this might result in additional penalties.
Let’s say your automotive insurance coverage ends at 12:01 AM on October 15. You drive to work at 7:30 AM on October 15 and trigger an accident. You trigger $50,000 of injury to the truck in entrance of you, and the opposite driver and passengers require $100,000 of medical payments and remedy. Usually, automotive insurance coverage would cowl all of those prices. Nevertheless, as a result of automotive insurance coverage has lapsed, you aren’t insured, which implies automotive insurance coverage doesn’t need to cowl it. On this scenario, your insurer would deny your declare – and you would need to cowl all damages out of pocket.
Search for a Cancellation Discover out of your Insurance coverage Firm
Most states require insurers to ship you a cancellation discover earlier than canceling your coverage. In the event that they haven’t acquired cost from you, or if they’re canceling your coverage for any purpose, then they should notify you prematurely – they can not simply cancel your coverage.
In case you have acquired a cancellation discover out of your insurance coverage firm, then store round for a brand new coverage. Begin your new coverage on the date your outdated coverage ends to keep away from a lapse in protection.
Make Positive Your New Coverage Begins on the Identical Date Your Outdated Coverage Ends
As a result of automotive insurance coverage ends at 12:01 AM on the listed date, you must be certain your new coverage begins on that very same date (assuming you need to preserve steady automotive insurance coverage protection).
Whenever you purchase a brand new automotive insurance coverage coverage, it begins at 12:01 AM on the listed date. When your new automotive insurance coverage begins on the identical date your outdated automotive insurance coverage ends, you keep away from a lapse in protection. Your new coverage begins the second your outdated coverage ends.
Many drivers make a mistake when shopping for a brand new insurance coverage coverage. Their outdated coverage ends on November 15, for instance, so that they purchase a brand new automotive insurance coverage coverage for November 16. This sounds proper – nevertheless it leaves you with a lapse in insurance coverage protection for one full day. The insurance policies want to finish and begin on the identical date to keep away from a lapse.
Sustaining steady protection helps you keep away from additional penalties from the DMV. It additionally avoids potential legal responsibility points – say, in case you trigger an accident whereas automotive insurance coverage lapses.
You Can Cancel Automobile Insurance coverage at Any Time
Wish to change to a brand new automotive insurance coverage supplier? Did you discover a higher charge with a competing supplier? You’re allowed to change automotive insurance coverage suppliers at any time.
Name your automotive insurance coverage firm and inform them you want to cancel your coverage. Most insurers have totally different cancellation insurance policies, though most assist you to cancel any time with no penalty. Most automotive insurance coverage firms additionally supply a refund on any premiums you’ve gotten paid upfront.
Contact your automotive insurance coverage firm to cancel your coverage. Inform them the date you want to cancel your coverage. Whenever you purchase a brand new coverage, be certain it begins on the identical date. In case you try this, you keep away from a lapse in protection.
Closing Phrase on When Your Coverage Ends
An ordinary 6 or 12-month automotive insurance coverage coverage ends at 12:01 AM on the date of expiry, the date of cancellation, or the date listed in your coverage.
Some states and insurers have a grace interval, whereas others don’t. It’s potential your automotive insurance coverage will prolong previous this date and time, though it’s additionally potential your automotive insurance coverage will lapse instantly after 12:01 AM.
Contact your insurance coverage coverage to confirm the tip date and time of your coverage. Purchase a brand new coverage and have it begin on that date to keep away from a lapse in protection.
