Best and Cheapest Car Insurance After a Lapse in Coverage

Progressive is the only major national provider on this list (excluding USAA, which has membership requirements), making it a good option for drivers with a lapse in coverage anywhere in the country. However, as a standard insurer, it may not provide coverage to very high-risk drivers, such as those with other violations in addition to a gap in their insurance history.

It also has below-average rates for drivers convicted of a DUI, indicating that drivers with a lapse in coverage, who are also considered higher risk, may find affordable policies with Progressive.

While Progressive’s ratings tend to be mixed on various customer satisfaction studies, it did rank above average in California, making it a particularly good choice for drivers in that state.² It offers easy online quotes, and a strong set of digital tools for managing your policy.

Dairyland is a subsidiary of Sentry Insurance and currently operates in 38 states. It’s considered a nonstandard insurer as it caters to drivers with violations on their record, especially those who require SR-22s. A brief lapse in coverage generally won’t bar you from getting standard insurance, but you may be in this situation if you’ve had a lengthy lapse and have multiple accidents, DUIs, or other violations.

Because its customer base is higher risk, its rates tend to be higher than average, but it may offer coverage when other companies won’t. Dairyland offers bilingual support in English and Spanish, as well as coverage for motorcycles, ATVs, RVs, and driving in Mexico.

It doesn’t provide home insurance policies, but it does offer a homeowner discount if you have a policy with another insurer, along with several other discounts that drivers can take advantage of. These include discounts for transferring your policy to Dairyland, completing an approved defensive driving course, and insuring multiple cars on your policy.

Direct Auto is another nonstandard insurer that was recently acquired by Allstate. It’s available in 15 states and has in-person locations across these states, allowing potential and current customers to come in and speak to an agent if they prefer. It even accepts cash payments at its stores, which is one of the ways it caters to different payment preferences and budgetary restrictions.

In addition to accepting cash, Direct Auto puts customers in almost full control of their payments to alleviate as much financial pressure as possible. It allows customers to choose which day of the month their payment is due to accommodate individual cash flow situations, and drivers can also decide how often they prefer to pay, which can be in full at each policy renewal or in installments. If you choose to pay in installments, you can decide how much to pay up front, which will then determine how much your remaining payments will be.

Policyholders can pay by mail, in person in cash, online via debit or credit card (via one-time payments or autopay), and by e-check. Direct Auto also offers several discounts to help drivers save, including through its DynamicDrive telematics program, which provides a discount of 10 percent just for signing up and an even bigger discount at your next renewal if you drive safely.

Erie is a popular regional insurer available in 12 states and Washington, D.C. It consistently ranks highly for customer satisfaction in various industry studies, including J.D. Power’s Auto Insurance and Auto Claims Satisfaction studies. It also earned an A- rating from the CRASH Network, making it the only insurer on this list to land on the Honor Roll.

While rate data is not available specifically for drivers with a lapse in auto insurance coverage, Erie generally has affordable average rates for high-risk drivers, including those with DUIs or accidents on their record.

One of Erie’s most appealing features is its Rate Lock option, which lets you lock in your premium when you add this option to your policy, depending on your state. Insurance rates tend to increase year-over-year, but as long as your policy details remain the same (i.e., you don’t move or add a driver), Erie will not raise your rate — even if you file a claim. This can be particularly valuable if you’re already facing higher base rates due to a lapse in coverage.

USAA is a national insurer that caters to members of the military, veterans, and their families. Having a lapse in coverage doesn’t necessarily disqualify you from coverage, though you should expect to pay more. However, USAA’s base rates tend to be very competitive for eligible members, so you may still find that it offers a lower rate than other companies.

Drivers who have had a lapse in coverage can also mitigate the higher premiums by taking advantage of one of USAA’s two usage-based insurance programs, depending on which fits their needs best. SafePilot is a standard telematics program that rewards you for safe driving. You can earn a 10 percent discount at signup and up to 30 percent at renewal, depending on your driving habits.

Meanwhile, SafePilot Miles takes into account how much you drive in addition to how safely you drive. With this program, you can earn 20 percent off your premium for driving less, and another 20 percent off for safe driving.