When an insurance policy is restored after a cancellation. Cancellations can take place when an insured requests to cancel their policy, or the payment due on the policy is not received.
A reinstatement can happen without a lapse or with a lapse.
Friendly reminder: A lapse is any time that you do not have car insurance. What this means is that your car is not covered in case of an incident. A lapse can happen if your coverage is canceled, you did not renew your policy in the allotted time or you stopped paying towards car insurance.