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Written byMiranda Marquit
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Co-hosts the Money Talks News podcast
MBA from Utah State University
Miranda is a financial writer and avid podcaster with nearly two decades of experience contributing to major outlets, including Forbes, The Hill, and NPR.
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Edited byBecky Helzer
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Table of contents
When an insurance company cancels your policy, it means your coverage has ended before your policy term is over.[1] Whether you can reinstate a canceled car insurance policy depends on why your coverage was canceled.
If you’ve received a cancellation notice but your policy hasn’t yet lapsed, you still have options. You can shop around and compare quotes with other insurers or ask your current insurer if you’re eligible to reinstate your coverage.
The important thing is to act quickly, since driving without insurance is illegal in nearly every state.
Here’s what you need to know about reinstating a canceled car insurance policy.
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*Quotes generated for Insurify users within the last 10 days. Last updated on December 3, 2025. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from December 3, 2025. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on December 3, 2025. Actual quotes may vary based on the policy buyer’s unique driver profile.
Rates shown are real-time Insurify user quotes from 500+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from December 3, 2025. Actual quotes may vary based on the policy buyer’s unique driver profile.
How to reinstate a canceled car insurance policy
If your insurance company cancels your auto insurance coverage, you may be able to request reinstatement, depending on the reason. The law requires insurers to send you a notice of cancellation before ending your coverage, meaning you’ll have a short window to complete this step.[2]
Follow these steps to get your canceled car insurance policy reinstated.
1. Contact your insurance company
The first step is to call your insurer and ask why your policy was canceled. Insurance companies cancel coverage if you don’t pay your premium, lose your license, or provide false information on an insurance application.
Before contacting your insurance company, have the following information handy:
Your policy number
The vehicle identification number (VIN) for the car your policy covers
Your driver’s license number or Social Security number (an insurer may request these for identification purposes)
It’s important to call your insurer as soon as possible after receiving notice of your policy’s cancellation. You may be within your grace period for reinstating coverage.
2. Pay outstanding balances
If you miss enough payments, car insurance cancellation laws typically allow your insurance company to terminate your coverage before the policy term ends.
You may be able to reinstate your insurance simply by paying the outstanding balance. You may also have late fees. Keep in mind that you could lose car insurance discounts and pay higher rates after your policy is reactivated.
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Can Your Car Insurance Company Drop You? What to Know About Cancellation
3. Fulfill any waiting period requirements
In some cases, the specific reason for your cancellation might be due to a license suspension or having incorrect information on your insurance application. Your notice of cancellation might note this, and your insurer may tell you there’s a waiting period for reinstatement.
Many insurers require documentation that you’ve resolved the issue. For example, you might need to provide documentation that you completed a traffic class to get your driver’s license back. If the information on your application is wrong, you might need to provide documentation to back up your answers on your new application.
The insurer will then decide whether to accept you back as a customer or if you pose too much of a risk going forward.
4. Reinstate your canceled policy
Insurers typically offer a grace period of up to 30 days after cancellation to reinstate an eligible policy. Once you meet your insurer’s requirements and pay any late fees and missed premiums, you can have your policy reinstated.
As you work to reinstate your policy, this can also be a good time to reassess your coverage needs and adjust your policy if necessary.[3] Consider your car insurance premium and what might make sense. You might need to increase coverage, adjust your deductible, or take other steps to make sure you get the protection you need at a price that fits your budget.
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Reasons why your insurer may cancel your car insurance policy
It’s important to note that cancellation is different from non-renewal. A company might decide not to renew your policy at the end of its period due to you having a serious car accident or too many past claims.
A company may order cancellation of your policy for the following reasons:
Non-payment of premiums: If you miss payments, the company can cancel your policy. It usually gives you a grace period to catch up and pay penalties and fees, as well as your outstanding premiums. But if you fail to do this, you could face policy cancellation.
Driver’s license suspension or revocation: If you’re no longer allowed to drive on public roads due to state law, your insurer could cancel your policy.
Fraudulent information on your application: A company can cancel your policy if you, as the registered owner, have knowingly supplied wrong information on your application. If this information was placed here fraudulently, it’ll be hard to get your policy reinstated. But if the information was placed in error, you might be able to correct it with a new policy application.
What to do if your insurer won’t reinstate your policy
Your insurer may choose not to reinstate your policy. But unless your insurer is canceling your policy for non-payment, you’ll typically have a grace period before your coverage lapses.
Before you’re out of that grace period, here’s what to do next:
Ask your insurer if your policy can be reinstated. First, verify with your current insurer that your policy isn’t eligible for reinstatement.
Shop around. Contact several insurers to compare pricing and coverage.
Buy a new policy. If your insurance was canceled for a driving infraction, you may need to turn to a high-risk insurance company for coverage.
What to do if your car insurance lapses
You normally have a grace period before car insurance cancellation. It’s important to work to get your policy reinstated or to apply for new insurance as quickly as possible during this grace period, as a lapse in car insurance can result in higher prices the next time you try to get coverage. Additionally, your lapse in coverage will be on your record, and a long lapse will be concerning to insurers.
If your car insurance lapses, try to get a new policy as soon as possible. Compare different companies, and look for one that offers good customer service and might deal with someone who’s had trouble with insurance in the past.
Just because a previous insurance company canceled your insurance and it resulted in a lapse doesn’t mean you won’t be able to get coverage going forward. You just might have to work with a different company that charges higher rates.
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Will your car insurance go up after a lapse in coverage?
Yes, your car insurance rates will typically increase after a lapse in coverage. Insurance companies see uninsured drivers as riskier to insure, and you’ll pay higher rates as a result.
Reinstating a canceled car insurance policy FAQs
Once you know the factors involved in your cancellation, you can work with your insurance company to potentially have your policy reinstated. Here are some answers to questions you might have about how to get your policy back.
How long does it take to reinstate car insurance?
If you take action within your insurer’s grace period, your policy may be reinstated immediately. This includes paying any past due premiums, late fees, and penalties. If you miss the grace period, you may have to submit a new application to determine whether you’re still eligible for coverage.
Are there any fees or penalties for reinstating a canceled policy?
Depending on the insurance company and its rules, as well as state laws, you might have to pay late fees and penalties in addition to catching up on any missed payments. Make sure you understand the full cost of reinstatement as you go through the process.
What happens if you pay your car insurance late?
If you make late payments, your car insurer might decide to cancel your policy. It can also add late fees. Another possibility is that your insurer might increase your car insurance premium at time of policy renewal. You may also lose discounts or face some other penalty for late payments.
Can insurers see canceled policies?
Yes. Insurance companies share information about canceling policies with other insurers through third-party agencies. The Department of Motor Vehicles also receives notification of policy cancellations.
How long does a lapse in car insurance stay on your record?
A car insurance lapse may stay on your record for between three and five years. This varies by state and insurer, but you may pay higher premiums during this period, as insurers see an insurance lapse as a sign of a high-risk driver.
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Sources
- Insurance Information Institute. "What's the difference between auto policy cancellation and nonrenewal?."
- National Association of Insurance Commissioners. "NAIC AUTOMOBILE INSURANCE DECLINATION, TERMINATION, AND DISCLOSURE MODEL ACT."
- Insurance Information Institute. "How to save money on car insurance."
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Miranda Marquit Insurance Writer
Miranda Marquit, MBA, is a freelance financial writer covering various markets and topics since 2006. She has contributed to numerous media outlets, including Forbes, TIME, The Hill, NPR, HuffPost, Yahoo! Money, and more. Her work has been syndicated by MSN Money, Marketwatch, Credit.com, and other publications. She has written about insurance topics for Clearsurance, HealthCare.com, and various other websites. She is also an avid podcaster and co-hosts the Money Talks News podcast. Miranda has a Master’s Degree in Journalism from Syracuse University. Connect with her on LinkedIn.
Miranda has been a contributor at Insurify since October 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.