What Does Car Insurance Lapse Mean? 
A lapse in coverage is what is meant , meaning that the policy is cancelled . This can occur for many reasons such as non payment of premium on the part of the insured or the cancellation or non renewal pf the policy by the insurance company . A lapse in coverage will , in many states , be reported to the Department of Motor Vehicles and may result in a fine and the suspension of the car 's registration . 