Paying for car insurance is just a fact of life. Many states have mandatory requirements for insurance and most people, though they may not like it, know that it would be foolish to drive without the protection of car insurance.
But, there may be a period in your life when you suddenly find yourself without a car. Maybe you’ve moved to a city with great public transportation. Or, maybe you are carpooling to work and live in an area where most of your daily needs are in a walkable area.
While it may feel like you are saving money by not having to pay a monthly insurance bill, you may end up hurting yourself in the long run.
The reason is because insurance companies deal in risk. And if you have a spotty history of having car insurance, they will begin to view you as a risk instead of a steady thing. This can lead to higher rates, especially if you have a less then perfect driving record.
The risks of letting your car insurance coverage lapse
Remember, if you let your coverage lapse, you do not have insurance to cover any injuries you sustain in any accident. It’s possible that the insurance of the driver who is at fault will cover your costs, but what if they don’t have insurance?
Also, as stated earlier, a spotty car insurance record looks like risk to an insurance company. So, the next time you are shopping around for car insurance you may just see higher rates than you have in the past.
What you can do
If you are now thinking that it’s not a good idea to let your car insurance lapse, you can fix it by getting reinstated. If you’ve lapsed because of non-payment, just give your previous insurance company a call and work with them to get your policy up and running again. There are usually options for restarting the policy you had previously, as long as it hasn’t been too long.
Another option is to get listed as a driver on someone else’s policy. This should cover you, depending on the policy, and you can keep from showing a gap in your auto insurance coverage. So, if you are a one-car family, make sure all eligible drivers are listed, not only for protection, but to keep a strong car insurance history for everyone.
Exceptions
There are some instances in which a car insurance company will not frown upon a lapse in coverage. These two situations include those who are on military duty, and thus may be deployed and unable to use their vehicle, and for young drivers who are just getting started and may not own their own car right away.
If you have had a lapse in coverage, use the InsuranceWins form to get quotes from major auto insurers and find a policy that keeps you covered.
