Insurance is something that we often take for granted, until we find ourselves in a situation where we desperately need it. Letting your insurance lapse can have dire consequences and leave you vulnerable to a range of risks.
In a hard insurance market (like we are right now), letting your insurance lapse is especially risky. Curious about what a “hard market” is? Check this out.
But first, what does it mean to let your insurance lapse?
Lapse in insurance: A period of time when you do not have insurance coverage, usually because payments were not made and/or you were dropped by your insurance company.
Here are some of our top reasons why you should never let your insurance coverage expire.
1. Financial Protection: Insurance provides a safety net to protect you from unexpected expenses. Whether it's auto, health, home, or any other type of insurance, having coverage ensures that you won't have to bear the full financial burden in case of an unfortunate event. From medical emergencies to car accidents and natural disasters - we never know when these things are going to impact our lives. Insurance can help mitigate the financial impact and provide you with peace of mind.
2. Legal Requirements: In many cases, insurance is a legal requirement. For instance, most states mandate drivers to carry auto insurance. Failing to maintain the required coverage can result in hefty fines, license suspension, or even legal trouble. By keeping your insurance active, you not only stay on the right side of the law but also avoid unnecessary penalties.
3. Property Protection: Homeowners and renters insurance safeguard your property and possessions against damage or loss. From fire and theft to natural disasters, these policies provide financial support to help you rebuild and replace your belongings. Without insurance, you risk losing everything you've worked so hard for, leaving you in a difficult and potentially devastating situation.
4. Peace of Mind: Life is unpredictable, and unforeseen events can turn your world upside down. Having insurance coverage offers peace of mind, knowing that you have a safety net to fall back on when things go wrong. It allows you to focus on living your life without constantly worrying about the financial implications of unexpected circumstances.
Want to avoid a lapse in coverage? Sign up for EFT!
Never miss a payment by signing up for automatic bill pay! We always recommend signing up for EFT to make paying your bill hassle-free.
Recurring EFT (electronic funds transfer) is a payment method where automatic withdrawals are made from your checking or savings account to pay for your insurance premium on the date of your choice.