I filed a claim for a hit and run on my car which totaled it. What happens now if my insurance lapses while my claim is active?
Posted Nov 4, 2022, 1:37 AM UTC
1110
Don’t cancel your coverage. Previously uninsured drivers get a higher rate when you get a vehicle again and go to get insurance. Not sure if that is state by state but I would not recommend it.
15
This. If you want to save money on insurance while you wait to get a new car, get a NNO (Named Non-Owners) policy, your company should be able to convert your current policy to an NNO easily.
8
At least keep some insurance. A non-owner's policy is likely cheaper but will keep you insured. What you want to avoid is a lapse in coverage, because if you have no insurance at all and want to get coverage later, you're looking at a huge premium increase because they're all going to recognize you as someone that was previously uninsured.
If you're using a rental vehicle as part of your claim then keep in mind your policy is providing coverage to the rental vehicle for the time being.
If your policy lapses, it will have no bearing on a payout for your current claim as you had the coverage then. A lapse will greatly affect future premium rates.
3
The date you incurred loses (accident) only matters. Besides that, are you aware running down your coverage increases your rate at the next renewal. You want to make sure it's totaled indeed!
2
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1
Your fine as long as you had coverage on the date of loss
1
Since you actually have no car, you have nothing to insure. I believe I just suspended my insurance.
1
Nothing in regards to your claim. They only look at whether you had insurance on the date of the incident or not. Outside of that you might have fines imposed by the state but that all depends on the state and their requirements.
Why would I have fines?
Certain states require you to have insurance if your licensed or have a car registered.
If you plan on getting a car soon, it's worth keeping your insurance active. Or you can look into a named non owners if it's going to be a few months.
The money you spend now will save you money in cheaper future premiums you'll pay with a lapse.
Adding to what u/Adventurous-Beach-2 said:
during the total loss process you will be asked if you want to keep the totaled vehicle or turn it over to the insurance company.
If you turn it over to the insurance company, and you’ve returned any rental you might have from the claim, you should be able to remove the vehicle from your policy once you are free and clear on the title.
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