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Reasons To Not Let Your Motorcycle Insurance Policy Lapse


Allowing your motorcycle insurance to lapse can have some significant consequences, most obvious of which is the unavailability of collision or liability coverage in case of a loss or accident. Generally, a lapsed policy occurs when you fail to pay the renewal premium or if you pay premiums in monthly installments and you miss a payment. As a result, your policy becomes inactive and your coverage is cut off. When shopping for a motorcycle insurance quote, decide how you will pay the insurance premium at the outset in order to avoid a policy lapse in coverage.

If your motorcycle is involved in an accident during a lapsed period, and the operator is found at-fault for the collision, the repairs to the motorcycle become out-of-pocket. At-fault operators will have no recourse for repairs against the other driver's policy. In addition, the lapsed policy means no liability coverage for repairs to the other driver's vehicle or for bodily injuries in case anyone other than the at-fault operator becomes injured. From a liability standpoint, the effects are potentially disastrous. Allowing a lapsed policy may jeopardize your personal assets, and you can be sued personally. If you are sued personally, you will also incur the expense of paying attorney's fees, and you will have to pay any settlement or judgment personally.

Even if the operator of your motorcycle is not found at fault for the accident, allowing a lapsed policy can still have consequences for two reasons. First, uninsured and underinsured motorist coverage becomes important in case the other driver is driving around without insurance. A lapsed policy foregoes this coverage if you end up seriously hurt, so make sure this coverage is included with your motorcycle insurance quote. Second, you will be unable to file an insurance claim against the other driver because he doesn't have any insurance either. This means considering a personal action in a court of law against the other driver, with the understanding that she has assets to compensate you.

Some other consequences may occur in the event of a lapsed policy. For example, if a police officer pulls you over for a driving infraction, the officer will likely write a ticket for lack of insurance, if he sees that your insurance card has expired. This potentially carries fines. In addition, you will have to shop for a new motorcycle insurance quote. The prospective insurance company may view you as a poor risk, and your premium may cost more.

Avoid a lapsed policy by making sure you have the financial arrangements in place for paying your motorcycle insurance premium on time. Forgetting to pay your premium can have a host of regrettable consequences.

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