What happens if an insured fails to renew their Personal Auto Policy on time?

When an insured fails to renew their Personal Auto Policy on time, coverage may lapse, leaving a gap in coverage. Insurance policies typically have renewal requirements that must be met to maintain continuous coverage. If the renewal isn't completed by the due date, the policy will not continue, and the insured may find themselves without protection against potential claims or losses during that lapse period. This can lead to serious financial risks, as any incidents occurring after the lapse would not be covered under the policy.

On the other hand, policies do not automatically continue without active renewal; thus, a lapse can create a significant gap in coverage. It is also not the case that the insured would receive a refund for overpayment or that the insurer would automatically renew the policy in the absence of the insured taking the necessary action. Policies usually require prompt renewal to avoid these issues, highlighting the importance of adhering to renewal timelines.