Insurance Term of the Day: Reinstatement

Sometimes, life can get a little crazy, and the important things slip our mind. Have you ever accidentally let your insurance coverage cancel? Maybe your bank account information changed, and you failed to let your insurance company know. Maybe you lost the bill and paying your insurance didn’t cross your mind for a bit too long. The insurance company has the right to cancel your policy for nonpayment.

If you reach out to your insurance company, there is a possibility that they will allow you to reinstate your policy, which is called reinstatement. Reinstatement is resuming coverage of a previously canceled policy due to nonpayment.

The insurance company can choose not to allow reinstatement. Whether they choose to reinstate your policy or not involves a few factors. The insurance company will weigh their options and decide whether it’s too risky to insure you at this point. Typically, they only allow reinstatement up to thirty days after the cancellation. Usually, they will require that you sign a statement of no loss. This states that there has been no loss during the period of lapse in coverage. The statement of no loss is a way to transfer financial liability of any loss during the lapse in coverage back on the insured.

If your insurance company decides not to reinstate your policy, you should start shopping for insurance right away. If you face a loss without insurance, you will be paying out of pocket for all the damages and possible fines.

Remember, a lapse in coverage will usually lead to an increase in premium. If you are uninsured for any given period, you could have to pay more for your insurance. Read more about this here.

By: KayLynn P.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

What Amount Would You Sue For?

What is The Value You Place on the Life of a Loved One?

Why is Life Insurance Least Expensive for Those Who May Need It Least?

Why the Young and Healthy May Need Life Insurance

The Value of Resilience and Flexibility

Recent Years Have Demonstrated th Value of Versatility

How Long is…?

The Clock is Ticking But do You Know What it Means?

Mr. Cheapo’s Bootcamp

Feeling Squeezed by Monthly Bills?

Common Fears and How to Overcome Them

Do You Have a Fear or a Phobia?

The National Death Index: The Ways We Die

Yes, Our Country Has a Death Index of the Most Frequent Causes of Death

Mathematics, Statistics, Odds and Life Insurance

The Odds of Certain Events Happening in Your Life

The ABC’s of Policy Loans

Learn More About This Potentially Valuable Feature of Your Life Insurance Policy

Keeping Important Documents Safe

Keeping Critical Papers in Their Place