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I live in the U.S., and accidentally let my car insurance lapse. What penalties can I expect to receive when I reinstate my policy? |
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While insurance laws differ from state to state, most insurance carriers penalize with a surcharge, or raise your rate. This penalty is usually cancelled after a certain time period (typically six months) with the condition of a clean driving record. Many companies, however, will continue to charge the higher rate unless you submit a written request to revert to your previous rate. Be sure to ask your insurer to process the appropriate paperwork to return you to your previous rate.
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