Auto Insurance Definitions: Lapse

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Car Insurance Terms and other Car Insurance topics.

In my car insurance policy, what is defined as a lapse?

Auto Insurance Definitions: Lapse

If your auto is covered by a car insurance policy and, for any variety of reasons, you elect not to renew, the auto insurance policy is considered to be in a lapsed state. The car insurance lapse begins when the current coverage period for your auto insurance policy ends. If, after a period of lapse, you want to renew your car insurance policy, you will be required to go through the standard application process again.

   

Comments

10/5/2006 7:13:28 PM
Jim Thomas said:

Lapse of insurance should be defined as driving without insuance! What if I do not own a car for a year then buy one and go for insurance? Lapse of auto insurance is skewed to the benefit of insurance companies and does not reflect the true intent!




Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Car Insurance Tip Site? Request a Tip Now!


Guru Spotlight
Tammi Reynolds