Lapse
/laps/
When your coverage ends due to non-payment.
Definition
A lapse occurs when your insurance coverage ends because you didn't pay your premium by the end of the grace period. A lapsed policy means you're uninsured and may face higher rates when getting new coverage. Some insurers report lapses to credit agencies.
Example
After forgetting to pay for three months, his auto policy lapsed, leaving him uninsured.
More General Terms Terms
The amount you pay for your insurance policy.
The amount you pay out-of-pocket before insurance kicks in.
The contract between you and your insurance company.
A request for payment under your insurance policy.
The protection provided by your insurance policy.
The maximum amount an insurer will pay for a covered loss.
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