When the grace period of your insurance policy comes to an end, you will come face-to-face with a lapse. Lapsing your insurance policy will add you to the growing list of uninsured motorists throughout the country – risking your life and financial status each time you get behind the wheel of your car. Here are 4 penalties you will face if you even consider letting your coverage lapse.
Exchange a Molehill for a Mountain
Many consumers seem to let their automobile insurance policies lapse because of the added monthly expense. A driver with hardly any claims experience may feel that the policy is not even necessary.
Lapsing your insurance policy because you do not want to pay your premium is essentially exchanging a financial molehill for a mountain – especially when you have to foot the bill for every dollar of every bill resulting from unexpected accidents and corresponding damages.
Paying the Bill without an Accident
You do not need to be in an accident to pay the cost for not having automobile insurance. The state law of Illinois imposes strict financial penalties for all uninsured motorists – including a minimum fine of $500. This is in addition to other related expenses, such as the court costs and fees you will have to pay if you are pulled over and summonsed by a city or state police officer.
The Ongoing Cost of a One-Time Lapse
Long after you have paid the $500 uninsured motorist fee and/or associated costs to an unexpected accident, you will still pay the consequence of lapsing your coverage. In most cases, a lack of automobile insurance leads to the state requiring you to maintain an SR-22 insurance amendment to your policy – increasing your premiums and the overall cost of your automobile insurance policy for several years. To know more about auto insurance lapse visit Great Northern Insurance Agency.