You may think that you’re missing out on getting your insurance renewed is not a big deal. Still, it can cost you way more than you can imagine, and especially in states like California, it can lead to devastatingly expensive consequences. There are many types of insurance, like car, rental, and health, and a lapse in any may leave you financially exposed in ways that you did not even imagine were possible.
1. Fines and Penalties for Lapsed Coverage
Missing out on any of your insurance renewals can cost you more than you would like to think. You may miss out on your renewal, thinking that you are saving some bucks, but when something goes wrong, you will find yourself regretting it. If, for example, you do not have car insurance and something goes wrong such as a car accident, then you can end up with your license suspended or fines that you do not want to pay. You could even lose your vehicle registration, and you do not want to end up having to go through the process of registering your vehicle again or having to fill out any other formal documentation or fulfill legalities. In such a case, a car accident attorney in Long Beach may be able to help you out.
2. Risking Huge Out-of-Pocket Costs
A lapsed insurance means that you will be paying for damages yourself. Insurances help you save money, so when something unexpected happens, an insurance that you have not renewed will end up costing you a lot more than the insurance’s monthly or yearly fee, for example, if you have car insurance, and your car gets stolen or is damaged because of an accident, then you will have to pay for the damages yourself if your insurance has not been renewed, and similarly, suppose you have not renewed your health insurance, and you get into an accident or have an unexpected need to go to the hospital. In that case, you must pay from your own pocket and wait for insurance until the coverage resumes. If you have home insurance, and someone breaks into your house and breaks something, then instead of your insurance paying off for your damages, you will be paying it entirely from your pocket.
3. Loss of Discounts and Loyalty Benefits
If you have insurance, and you are a good customer who gets it renewed regularly, and who has been a long-term customer, then you are at an advantage as the company will treat you well and give you premium benefits. So, the longer you keep on getting your policy renewed, the more loyal a customer you are, and the better benefits you get. However, if your insurance lapses, even for a short time, then you will lose those customer points and will have to start again. You will be at a loss, as you will have to wait for those benefits again.
4. Delayed Claims and Coverage Gaps
Another big issue that comes with not having insurance is not being able to make an insurance claim. If you have insurance coverage, but you have not been getting it renewed, and something happens in the meantime, then you cannot make a claim. Companies can excuse themselves since the insurance was not renewed, and even if they do help you cover costs, it may result in delays that you would not like during times of stress. Property damage, financial losses, and medical emergencies are times when you cannot make sense of anything. As such, if you have an insurance policy covering you, you do not feel burned about the finances at least. However, by not renewing insurance, companies are not under any compulsion to protect you technically, and you will be left stranded.
5. Damaged Financial Reputation
A huge issue that can come with not getting your policy renewed regularly is damage to your financial reputation. If you constantly miss your renewals, then companies will blacklist you. Insurance companies also share risk data, so companies may consider you a high-risk candidate and may not give you premium benefits and coverage. In this way, you lose your financial reputation, as well as your finances. You never know when you might need a good insurance policy. So, instead of jeopardizing your reputation and alienating companies from yourself, get your insurance renewed and stay safe.
Conclusion
When you get an insurance policy, you are not just fulfilling legal obligations, but you are creating a safety net for yourself, which will help you get back on your feet if something goes wrong. Not renewing your policies, however, may get you in more trouble than you expect, so make sure to get them renewed. ‘
