How to Get Your Car Insurance Policy Reinstated

Reinstating your car insurance is usually the best way to move forward after canceling your policy. Reinstalling after missing the grace period can be difficult. Learn about the benefits of reinstating your policy and tips to increase your chances of success.

What is auto insurance replacement?

Reinstatement is when your policy goes into effect after it expires for non-payment. The reinstatement of the policy comes from the same insurance company that you were previously insured with and may also have the same policy number and coverage.

Auto insurance refunds come in two different forms. With the first, the expiration of your policy remains in force and its reinstatement comes with new effective dates.

With the second, his policy continues as if there had never been a lapse. A no-lapse reinstatement is best because there isn't a time when the policy hasn't covered it. If an incident occurs during the term of your policy, your insurer will not cover the claims at that time.

Auto insurance reinstatement benefits

The main benefit of reinstating auto insurance is that it keeps your policy in force. You don't need to get insurance quotes, which can be time consuming and a bit cumbersome. It is the easiest way to regain coverage on your vehicle.

Another benefit is staying with the same insurance company that you are already familiar with. Perhaps you already have your numbers stored on your phone and have an established relationship with an agent. If they offer good customer service and competitive rates, it is easier to stick with the same operator.

Reinstating a policy without a lapse also means that you are not automatically at high risk. Your premium can go up if your policy expires, so a reinstated policy may be the cheapest way to go.

Penalties associated with reinstatement

If you have a monthly payment plan, your insurance company may no longer want to offer it. This means that you may have to pay semi-annually or annually. At a minimum, you will have to pay premiums for the remainder of your policy period. Sometimes you can get away with paying less, but it depends on your insurer.

Expecting you to pay more when you fall behind for non-payment may seem unfair, but that's how many accounts work. Paying late and letting your car insurance lapse costs more, and it could be a lot more.

Personal budgets are not easy to follow, and unexpected events can arise that delay even the best planner. Watch your spending carefully and try to find areas where you can cut back.

Consider asking your insurance agent what you can do to lower your insurance cost. For example, you can increase your deductible and decrease your coverage. This lowers your premium, but it also lowers your coverage, leaving you more vulnerable. If the option is less coverage or no coverage, the best option is less coverage.

If you anticipate delays in paying for your insurance, contact your insurance company. Let them know your status and when you will make the payment. They may be able to extend some flexibility.

Tips for reinstating car insurance

Having your policy reinstated once is not a guarantee, and multiple reinstatements are even more difficult. Don't expect more than two withdrawals in a three-year period.

Your chances of reinstatement are better if you have multiple policies bundled together. The policy mix gives you more bargaining power. Anyone can delay payment, but don't fall into the trap of paying on the last day of your grace period each month.

It is not a good sign for the insurer to request reimbursement, and if something goes wrong, there will be no room for maneuver.

If you are considering a possible denial of your reinstatement request, offer to pay the full amount. Often times, making a full payment will block your chances of reinstatement.


We hope you enjoy watching this video about How to Get Your Car Insurance Policy Reinstated

Source: Think Insurance


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