Was your car insurance policy canceled for non-payment? Missing paperwork? Another reason? Depending on the situation, reinstating your canceled car insurance policy could be one of the quickest ways to get back on track after you've gone without insurance.
What does car insurance reinstatement mean?
A reinstatement is defined as "the restoring of a canceled policy to full force and effect." It sounds very official, we know, but all reinstatement means is that your canceled car insurance policy starts back up. It's reactivated! You get to keep your old policy number and coverage.
A policy reinstatement comes from the same insurance company you bought insurance from previously. You can't have a canceled car insurance policy with Company A and then get it reinstated with Company B. Car insurance policies aren't transferable!
Types of reinstatements
There are generally two types of policy reinstatements: one without a lapse in coverage and one with a lapse in coverage. If you’re eligible, continuing your previous policy as if a lapse never happened is the better option of the two.
Reinstatement without a lapse. This can help you maintain your state's financial responsibility requirements, comply with your lienholder's insurance requirements, and establish/build a history of continuous insurance coverage.
Reinstatement with a lapse. With this type of reinstatement, your policy is reinstated on an effective date that is after the date the policy cancelled. Your insurance history will show a gap in coverage. For example: Your policy cancelled for nonpayment at 12:00 a.m. on June 1. At 2:00 p.m. on June 10 you pay the past due amount you owed and your insurance company agrees to reinstate you effective on that date and time. You will have a gap in coverage from June 1 until 2:00 pm on June 10.
Am I eligible for policy reinstatement?
You might be! Reinstatement requirements vary by company and state law. It's best to check with your car insurance company if you're unsure of your eligibility for reinstatement.
At Direct Auto & Life Insurance, you could be eligible to request reinstatement of your policy if:
Your policy has been canceled for fewer than 30 days.
You did not have an accident during the period that your policy was canceled.
You can pay all monies owed as of the date you request reinstatement (if your policy was canceled for non-payment).
A canceled policy isn't the end of the world, even if you aren't eligible for reinstatement. Drivers who aren't eligible for reinstatement can apply for a new car insurance policy over the phone, online, or in-person. Direct Auto works with all types of drivers, even those who have less than perfect insurance histories.
How to reinstate a canceled car insurance policy
Let’s say you're eligible to request reinstatement with Direct Auto. Great! Reinstating a canceled policy is relatively simple and we allow our customers to reinstate their policies whenever possible. Reinstatement means you won't have to start over with a new quote, a new insurance company, and new coverages you might not be familiar with.
To request reinstatement of canceled car insurance:
Complete and Sign a no loss statement on which you certify that you have not had any losses for which a claim can be made under the policy since the date of cancellation. You will need your policy number and date of birth to access your policy information.
Pay any outstanding account balance.
If you're eligible, reinstating a canceled policy is one of the simplest ways to get coverage on your vehicle again. Your friends at Direct Auto are here to help whether you need to renew a current policy, start a new one, or reinstate a canceled car insurance policy. We're here to provide you with the coverage you need and the great services you deserve, regardless of your insurance history. Call 1-877-GO-DIRECT (1-877-463-4732), click, or come in today!