What Happens When Insurance Policy Lapses. Short lapses in auto insurance coverage are somewhat common and reinstating your policy or purchasing a new one can be quick and easy. If your policy lapses, you can apply to have it reinstated.
For example, if it’s within 30 days of the policy lapsing, you may be able to reinstate it by just catching up on your premiums. When the policy lapses, there is usually a chance to reinstate it by filling out some paperwork and making up for the missed premium. This can leave your family vulnerable.