What to Do If Your Home or Auto Insurance Coverage Lapses

August 19, 2025

What is a lapse in coverage?
What does a lapse in coverage mean for you?

What to do if your coverage lapses?
How do you avoid a lapse in coverage?

Life gets busy. Between work, family, and the endless to-do list, it’s easy for an insurance renewal date to slip your mind. But if your Home or Auto Insurance expires without a replacement in place, you could be left completely unprotected, sometimes without even realizing it.

A lapse in coverage can lead to costly fines, higher rates down the road, and serious financial risk if something happens to your home or vehicle. But the good news is that it’s an easy problem to avoid—with the right guidance.

Keep reading to learn more about what a lapse means for you, what to do if it happens, and how you can stay protected year-round.

What is a lapse in coverage?

A lapse in coverage happens when your Home or Auto Insurance policy expires and isn’t renewed or replaced by another policy. In other words, there’s a gap in your protection—leaving you uninsured for a period of time.

Common reasons for a lapse include:

Missing your renewal date or forgetting to submit payment.
Outdated contact information, meaning you don’t receive renewal notices.
Switching to a new provider, but not finalizing the policy.
Payment issues, such as insufficient funds or an expired credit card.

What does a lapse in coverage mean for you?

Even a short gap in your Home or Auto Insurance can have big consequences—and a ripple effect of problems that may follow you long after your coverage is restored.

For Auto Insurance:

Driving without insurance is illegal in most provinces—you could face hefty fines, license suspension, or even have your vehicle towed.
If you’re in an accident, you’ll be responsible for paying for any vehicle repairs, property damage, and injury claims out of pocket.

For Home Insurance:

Your property is fully exposed to risks like fire, theft, water damage, or personal liability.
If you have a mortgage, your lender may require proof of coverage. Failure to provide it could put your loan in default.

For both Home and Auto Insurance, insurers may view you as a higher risk after a lapse, which could mean higher premiums down the line—or even being declined for coverage altogether. That’s because continuous coverage is a sign of stability and reliability when it comes to your risk profile. The longer you can maintain uninterrupted coverage, the more favourably insurers are likely to view you.

What to do if your coverage has lapsed?

If you find yourself without Home or Auto Insurance, don’t panic—but don’t wait, either. Every day without coverage leaves you exposed to financial, legal, and personal risk. Here’s what to do:

1. Contact your broker or insurer right away.

Time is critical. The sooner you let your broker or insurer know, the more likely it is that you can reinstate your existing policy or quickly find a new one without an extended gap. Waiting too long can limit your options and increase costs.

2. Update your information.

Often, a lapse happens because of simple errors, like an expired credit card, a change in address, or a missed email. Make sure your payment details, contact info, and any recent changes to your home or vehicle are up to date so your insurer has everything they need to process your coverage.

3. Ask about reinstatement.

Many insurers have a short grace period after a lapse during which they can reinstate your policy without starting from scratch. This can save you from higher premiums or stricter eligibility requirements. Be prepared to pay any outstanding premiums right away to avoid further delay.

4. Shop the market.

If reinstatement isn’t possible—or if your insurer raises your rate significantly after the lapse—compare quotes from multiple providers. A broker can help you do this quickly and efficiently, ensuring you find the right coverage at the best available rate.

5. Confirm your coverage start date.

Before you drive your car or leave your home and its contents unprotected, make absolutely sure that your new policy is active and in effect. Get written confirmation of the start date so you know exactly when you’re covered again.

How do you avoid a lapse in coverage?

A little preparation can go a long way toward keeping your Home or Auto Insurance active and avoiding the stress of a lapse. Here are our top tips to stay protected:

1. Plan for your payments.

Whether you pay annually or monthly, budget for your premium so that the funds are available when your payment is due. If possible, set up reminders—or better, automatic payments—to ensure your coverage renews on time.

2. Review your policy annually.

Before renewal, review your coverage, limits, and premiums, and update your insurer on any changes to your home or vehicle that could potentially impact your coverage. Confirm that they have your current contact information and mailing address on file so you never miss any important notices.

3. Work with a broker.

A lapse in coverage can be stressful, costly, and time-consuming to fix—but with an experienced broker (like PROLINK) in your corner, it’s completely avoidable.

From renewal reminders to rate monitoring, we’ll keep you informed and protected year-round. That way, you’ll never have to worry about a lapse, a last-minute scramble, or paying more than you should.

We handle all the follow-ups, paperwork, and back-and-forth with insurers so you don’t have to. Whether it’s renewing your policy, updating your details, or switching providers, we’ll manage the process from start to finish to make sure you’re never left uninsured.

With PROLINK, your insurance is never “set it and forget it”—it’s actively managed by a team committed to keeping you covered and confident. With over 40 years of experience and a wide network of 30+ providers, we’ll shop the market on your behalf and guide you towards the right coverage, from the right insurer, at the right price. Connect with PROLINK today to learn more!

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PROLINK’s blog posts are general in nature. They do not take into account your personal objectives or financial situation and are not a substitute for professional advice. The specific terms of your policy will always apply. We bear no responsibility for the accuracy, legality, or timeliness of any external content.