The best way to avoid a lapse in insurance coverage is to pay your premiums on time. However, those who experience lapses in coverage know this, so there must be other difficulties preventing them from doing that. If you are afraid that your coverage may lapse, take these precautions to ensure it doesn't:
Suspend Your Coverage
Some insurers allow you to suspend your coverage if you don't need it for some time. During this time, you won't be paying any premiums and your car isn't insured, so you shouldn't drive the car at all. Ask your insurer if they have this option, and what you need to do to qualify for it. For example, a general requirement is that the car must not have any outstanding loans on it.
This is a good option, for example, if you are going on an extended vacation and nobody will be driving the car. It's not just vacationers who may benefit from license suspension; other people who may benefit from it include students going for overseas studies and missionaries going to work overseas.
Reduce Your Coverage
If the issue is financial difficulties, but you do need to drive your car, then you can't suspend coverage. The only way to drive your car (legally) is to have it insured. However, you can reduce your coverage to the bare minimum so that you can afford your premiums. For example, you can choose to go with the state's minimum coverage only.
This will reduce your premiums drastically. It may be a dangerous move because you may not be able to pay for the damages should you get involved in an accident, but it is better than not having coverage at all. Again, this may not be possible if you are still servicing the car's loan because you have to adhere to the lender's limits.
Set Up Automatic Payments
Some people have the money, but forget to pay their premiums on time for one reason or another. For example, some people get forgetful when they are stressed or have too much work. If you are one of those people, then you should set up automatic payments for your insurance premiums. Just talk to your bank or card company on how to do it right.
If you do experience a lapse in coverage, you need to move fast to protect yourself from a huge rate hike. For example, you may need to explain why the lapse occurred and prove that you were not driving the car during that period. Talk to an agent, like one from Ahlquist Insurance, for more ways of avoiding a lapse in coverage or renewing coverage after a lapse.