When you apply for insurance coverage and begin your new car insurance policy, your insurer has the right to cancel your policy in the early days of new policy. If your insurer does not renew the policy, it is best to cancel the policy and switch to a new company. It is generally easier to reinstate insurance than switch providers since you are already familiar with your coverage details and with your agents at the providers. You may file a claim to re-establish your canceled policy, but there is no guarantee the auto insurer will agree. Car insurance companies may cancel, or drop, your coverage, though usually, you'll receive ample notice to get a new policy.
If you are not paying premiums on time, or you are not paying them at all, your insurer will end up canceling or dropping your policy. If you do not pay your insurance premiums for a long enough period that you lose coverage, you will need to apply for a new policy.
If you cannot make the payment during their grace period, and your coverage goes into a relapsed state, you may have a chance of getting your coverage back, depending on several factors, like how much time has passed, your history of delinquent coverage, and your insurance provider. You can generally keep your insurance from formally going into lapse by making your payments before their grace periods expire.
For instance, an insurer might offer a grace period in which you can pay off the payments, plus any penalties, interest, or fees, and get the policy back into effect. While this will vary depending on your policy's terms and your state's laws, chances are good that your insurance company would simply void your policy or not renew it until this grace period deadline, waiving any fee. If your policy has been canceled, you can probably reinstate it by talking with your insurer, depending on their rules and state laws. Reinstating coverage after lapse means that there has been a time when you were not covered under an auto insurance policy, as a result of your insurance company rescinding the policy.
Reinstating auto insurance means you had your policy terminated, most likely due to failure to pay your premiums, and have decided to re-establish that policy. If your coverage has been suspended, and you cannot get the policy reinstated, you cannot retroactively renew your coverage to cover a crash that happened in the past. If your lapse was short, due to missed payments or renewal, your car insurance provider can reinstate your policy after you make your payments. When it becomes hard to make monthly payments, it is best to contact them before the canceled policy goes into lapses.
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