What Happens if Car Insurance Lapses



Auto insurance protects your financial security by covering the other driver’s automobile repair and medical bills in the event that you cause an accident. Your coverage may also cover the cost of replacing or repairing your car if it were to be damaged or stolen.

Are you panicking because your auto insurance lapsed? If so, it’s understandable. Driving without proof of financial responsibility is illegal in Texas. If you get caught, you can get an expensive ticket and have your car impounded. If you get into a crash, you can be held personally liable for any injuries or property damage. A lapse in your car insurance is a serious matter – but you can fix it. 

What Are Texas Car Insurance Requirements?

Drivers in Texas are required by law to show that they have the financial resources to cover the costs of any accidents they cause, which most of them do by acquiring auto liability insurance. 

Texas requires drivers to carry a minimum of $30,000 in bodily injury liability coverage per person, up to a total of $60,000 per accident, and at least $25,000 for property damage. You’ll need to have proof that you have this coverage if law enforcement stops you or if you get into an accident.

Why Do People Let Their Insurance Lapse?

People let their insurance lapse for several reasons. Sometimes, it could be a simple mistake, like forgetting to pay the insurance bill. Often, it’s done because money’s tight.

Letting your insurance lapse might seem like a quick budget fix, but it’s really just a way of delaying the problem – and making it worse. The fees and penalties associated with lapsed insurance add up fast, and when you’re already having trouble with money, that’s the last thing you want. 

So, just how much money are we talking about? You could end up paying hundreds of dollars between tickets and towing fees – and you still have to get insurance. This is assuming you don’t get into a crash, in which case you could be responsible for thousands of dollars in damage. 

The longer you wait, the more likely it is your vehicle registration will be suspended – and reinstatement will cost you another fee. You could also be labeled a high-risk driver, leading to higher insurance premiums.

Car Insurance Lapse Grace Period

If you’re facing a lapse in your insurance, don’t panic. Texas has a grace period for nonpayment of car insurance premiums – but it’s important to note that this doesn’t mean you can drive without coverage. Your insurer may suspend your policy if your payment is late and report it to the state, and then you’re in trouble. 

The best way to avoid all this hassle is to make sure you keep paying your premiums on time – or better yet, get yourself insured with Pronto Insurance. Our coverage options are designed for people who need car insurance fast, and we offer competitive rates and flexible payment plans so you can find something that fits within your budget. Plus, we make it incredibly easy to get started – so you can get back on the road faster and safer than ever.

What Are the Consequences of Lapsing Your Car Insurance?

If you allow your car insurance policy to lapse, it means that you’ll be driving around with no coverage. Here are some consequences that can result from allowing your auto insurance coverage to expire in Texas:

  • You may receive a ticket and/or have your license suspended
  • You’ll likely be charged much higher rates for any future insurance policies
  • Your car may be impounded and you’ll need to pay a hefty fee to get it back
  • If you’re in an accident, you can be held personally liable for the costs of injury or property damage. 

What Should You Do if Your Car Insurance Lapses in Texas?

If your insurance has already lapsed, you’ll need to fix the problem immediately. You can contact your previous insurance company to see if they’ll reinstate the policy, or you can shop around for a new one.

Whichever option you choose, it’s important to make sure that you get all of your documentation in order and find out what proof you need to show law enforcement that you now have proper coverage.

How to Get Auto Insurance After It Has Lapsed

If you have let your auto insurance lapse, don’t despair. There are still plenty of ways to get an affordable policy quickly. At Pronto Insurance, our agents specialize in helping drivers with all kinds of car insurance needs – even if it’s been months since your last policy.

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