Preventing An Insurance Lapse After You Cause An Auto Accident

1 March 2016
 Categories: Insurance, Blog


Being involved in a car accident can be stressful, especially if it's determined that you were at fault for causing the accident. Being held liable for the damage caused during an auto accident can derail many aspects of your life. When it comes to car insurance, getting back on track doesn't have to be difficult.

Here are three tips you can use to ensure that your insurance doesn't lapse in the months following an at-fault accident. 

1. Stay in contact with your insurance agent to prevent a lapse in coverage.

Many insurance companies have strict policies when it comes to the types of drivers they are willing to cover. Being involved in an auto accident won't necessarily cause your insurance company to drop your coverage, but if you have other violations in your recent past these, combined with the at-fault accident, could affect your ability to retain coverage.

It's essential that you stay in close contact with your insurance agent so that you are aware of any problems that may arise with your policy. 

2. Attend all required court proceedings.

Some auto accidents result in legal actions that require you to go to court. If you, or another party involved in the accident, are hoping to gain financial compensation, then fault must be assigned by a court of law. It's important that you attend all required court proceedings following your accident.

If you are at fault for the accident, the court may place certain restrictions on you that could affect your ability to retain insurance coverage. Only by attending hearings and other court proceedings will you be able to communicate with your insurance company about these restrictions to ensure you don't experience a lapse in coverage.

3. Have your insurance agent file an SR-22 form.

When you cause an auto accident, you may be required to prove that you have the financial means necessary to pay for damages. A judge may order you to show proof by having your insurance company file an SR-22 form. This form lets the court know that your insurance company is prepared to cover the cost of future accidents.

Although the cost of filing the SR-22 is only about $25, the accident that led to you needing this form could cause your premiums to increase.

Understanding how to get back on track after you cause an auto accident is important. Work with your insurance agent to ensure that you meet all the requirements needed to retain coverage in the future.