Is there a difference between lapsed and canceled auto insurance?
An auto policy can become invalid due to cancelation or lapse. Depending on which event caused the coverage to be terminated, restoring the policy may or may not be possible.Auto Insurance PolicyAn auto insurance policy protects the policy owner from liability if the vehicle is involved in an accident. The insurer will be liable for compensating damages caused by the vehicle as well as to the vehicle itself.Policy LapseAn auto policy lapses when the policy owner fails to make premium payments.Policy CancelationAuto insurance companies can cancel a policy over several violations, including license suspension or revocation, committing a crime or misrepresenting information on an auto insurance application.ConsiderationsA person can reinstate her lapsed auto policy by paying back premiums and becoming current typically within 30 days of the termination of coverage.
