How To Get Your Auto Insurance Policy Reinstated
Your car insurance may be cancelled for numerous reasons. Often, this happens due to nonpayment. The process of reinstating your policy may be a really complicated one, but must be done, in order to limit the coverage lapse penalties and consequences. Find out more and get free auto insurance quotes online.
Typically, a car insurance reinstatement comes after your policy has lapsed due to not making your payment on time. A policy reinstatement must be done by the same insurance carrier you were previously insured. Often a reinstatement comes with your same policy number and coverage. Car insurance reinstatement can come in two different forms. One where your policy lapse stays in place and your reinstatement comes with new effective dates. The second way is where you continue with your previous policy as if a lapse never occurred. A reinstatement without a lapse is the best scenario.
You will be notified by your carrier that the policy expired and you will be presented the reasons. Dealing with nonpayment is the easiest scenario for reinstating. If you want to get your policy back, you just have to contact the company and inform them. Depending on their policy, they will either continue with the same premiums, plus late payment penalties, or you will have to be rated again. Make sure to ask which documents are needed.
Some carriers will ask you to pay in full upon reinstatement, in order to avoid future late payments. It is the recommended payment option.
Reinstatement is easier for those who bundled policies with the same carrier. It is easy to realize that insurance companies are more willing to forgive those who bring them more business. Additionally, the success of reinstatement is guaranteed if you opt for automatic electronic payments.
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