What is the effect of a "policy expiration" on coverage?

When a personal auto policy reaches its expiration date, coverage ceases unless the policyholder takes action to renew it. This means that once the policy expires, the insurer no longer provides protection against risks covered under the policy, such as liability for accidents or damage to the insured vehicle. The insured party needs to ensure that the policy is renewed before it expires to maintain continuous coverage.

While some may assume that coverage could continue seamlessly, that is not the case. It's crucial for policyholders to be aware of their policy's expiration date and to take proactive steps to renew to avoid any lapse in coverage. This is particularly important as a lapse can leave the insured exposed to financial risk in the event of an accident or damage to their vehicle after the expiration date.