A lapse in coverage can make it difficult to find insurance again. While maintaining coverage is important in protecting yourself and loved ones, sometimes individuals experience a lapse in coverage. This occurs for many reasons, like losing a job, switching policies, or failing to pay premiums.
As an insurance agent, I often have clients who have a lapse in coverage start searching for insurance again. Sometimes this makes finding insurance difficult and these clients may face higher premiums or have more restrictions. In this article, we’ll discuss factors that affect insurance after a lapse in coverage, the types of insurance available, the top insurance companies, and tips for finding insurance after a lapse in coverage. Let’s get started!
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The Best Car Insurance Companies For Lapses
As a licensed insurance agent, I cannot give you a definitive list of the best car insurance companies for lapses as this can change depending on the location, coverage, and individual needs. However, some car insurance companies that are known for providing coverage to drivers with lapses in their insurance history include:
GEICO: Government Employees Insurance Company, is a large American auto insurance company, it is a wholly owned subsidiary of Berkshire Hathaway that as of 2019 provided coverage for more than 24 million motor vehicles owned by more than 15 million policy holders as of 2017.
Progressive: is an American insurance company, it is the third largest auto insurance company in the United States, also provides other types of insurance such as motorcycle, boat, and personal umbrella insurance.
State Farm: is a large group of insurance and financial services companies throughout the United States with corporate headquarters in Bloomington, Illinois. It is the largest auto insurance company in the United States.
Allstate: is one of the largest insurance providers in the United States, it is a publicly held personal lines insurer, it sells auto, home, renters, motorcycle, and life insurance.
Nationwide: is an American insurance company, it is one of the largest insurance and financial services companies in the world, it sells a variety of insurance products, including auto, homeowners, life, and commercial insurance, as well as retirement plans, banking, and investments.
American Family: is an American mutual insurance company that primarily sells American family home, auto, and small business insurance, it is the 10th-largest property/casualty insurance group in the United States.
Pro Tip: It’s always best to compare quotes from multiple companies and to look into specific state-mandated programs that may help drivers with lapses find affordable coverage.
It is important to note that even if a company is willing to provide coverage, drivers with lapses in their insurance history may face higher premiums or other restrictions.
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Factors Affecting Insurance After A Lapse In Coverage
As an insurance agent, my clients who experience a lapse in coverage often ask me how it is going to affect their insurance. The truth is, after a lapse in coverage, there are several factors that affect your insurance.
Some of these factors include:
- Type Of Coverage: The type of coverage you are seeking after a lapse in coverage can affect your options and premiums. For example, health insurance may be more difficult to find after a lapse due to the high risk of pre-existing conditions. On the other hand, car insurance may be easier to find but may come with higher premiums due to the risk of a lapse in coverage.
- Length Of The Lapse: The length of the lapse in coverage can also affect your insurance options and premiums. Generally, the longer the lapse, the harder it may be to find insurance and the higher your premiums may be.
- Reason For The Lapse: The reason for the lapse in coverage can also impact your insurance options and premiums. For example, if you experienced a lapse due to a medical issue, insurance companies may be more hesitant to offer coverage and may charge higher premiums. On the other hand, if the lapse was due to a change in employment or a switch in insurance policies, you may have more options and lower premiums.
By understanding these factors, you can better evaluate your insurance options and premiums after a lapse in coverage.
Let’s move on to the different types of insurance that may be available after a lapse in coverage.
Types Of Insurance After A Lapse In Coverage
As an insurance agent, my clients who have a lapse in coverage often ask me what insurance is available to them. There are several options available, including:
- Health Insurance: Health insurance is an important type of coverage for individuals who have experienced a lapse in coverage. Health insurance policies provide coverage for medical expenses, such as doctor’s visits, hospital stays, and prescription medications. There are two main types of health insurance: individual health insurance and group health insurance.
- Individual Health Insurance: Individual health insurance policies are purchased directly from insurance companies and provide coverage for a single individual or family. These policies may be more expensive and may be more difficult to find after a lapse in coverage due to the risk of pre-existing conditions.
- Group Health Insurance: Group health insurance policies are typically offered through an employer and provide coverage for a group of individuals. These policies may be easier to find after a lapse in coverage but may have more restrictive coverage options.
- Life Insurance: Life insurance is a type of coverage that provides financial protection for loved ones in the event of the policyholder’s death. There are two main types of life insurance: term life insurance and permanent life insurance.
- Term Life Insurance: Term life insurance provides coverage for a set period of time, such as 10 or 20 years. These policies may be more affordable and may be easier to find after a lapse in coverage.
- Permanent Life Insurance: Permanent life insurance provides coverage for the entire lifetime of the policyholder and includes an investment component. These policies may be more expensive and may be more difficult to find after a lapse in coverage.
- Car Insurance: Car insurance is a type of coverage that provides protection for damages to a person’s car and other personal property. These policies may be easier to find after a lapse in coverage, but premiums may be higher due to the risk of a lapse in coverage.
Now that we’ve covered the different types of insurance that may be available after a lapse in coverage, let’s move on to the top insurance companies for coverage after a lapse.
Tips For Finding Insurance After A Lapse In Coverage
Finding insurance after a lapse in coverage can be difficult, expensive, and restrictive. It is important you take the necessary steps to make sure you have the right plan and company for you.
As an insurance agent, here are tips I recommend to help you find insurance after a lapse in coverage:
- Compare Insurance Options: To find the best insurance after a lapse in coverage, it’s important to compare a variety of options from different insurance companies. This can help you find the best coverage at the most affordable price.
- Negotiate Premiums: After a lapse in coverage, you may face higher premiums. To help lower your premiums, it’s important to negotiate with insurance companies and ask for discounts based on factors such as your age, driving record, and financial situation.
- Improve Your Financial Situation: Another tip for finding insurance after a lapse in coverage is to improve your financial situation. This can involve paying off debts, saving money, and improving your credit score. By improving your financial situation, you may be able to qualify for lower premiums and better coverage options.
- Explain The Lapse To Insurance Companies: If you are asked about the lapse in coverage during the insurance application process, it’s important to be honest and provide a clear explanation for the lapse. Insurance companies may be more willing to offer coverage if you can provide a reasonable explanation for the lapse.
- Navigate Challenges: Finding insurance after a lapse in coverage may come with challenges, such as higher premiums and more restrictive coverage options. To navigate these challenges, it’s important to be persistent and explore all of your options.
By following these tips, you can successfully find insurance after a lapse in coverage and protect yourself and your loved ones.
With the right insurance company and coverage options, you can get the protection you need at an affordable price.
Conclusion
As an insurance agent, I understand the struggle of finding insurance after a lapse in coverage. Understanding the factors that affect insurance after a lapse in coverage can help you better evaluate your insurance options. Be sure to follow the tips outlined in this article and check out the insurance companies discussed to find the right coverage to protect yourself and your loved ones.
