Sunday 22 January 2012

Consequences Of Lapsed Coverage On Auto Insurance Quotes

Finding decent auto insurance rates is already tough even with a clean driving past. Usually insurers are looking for a straightforward policyholder that will not cause them much trouble. They will discover any irregularities pretty quickly. Companies will not generally spare time and resources to dig deep into the reasons behind gaps in coverage while considering an applicant. Essentially drivers need to build a decent driving history before they are offered cheap car insurance quotes. It is possible that any lengthy breaks on the driver records may require you to start all over again.

Obviously it would be harsh to penalize a driver if the policy was lapsed only a day or two. Understandably, you may have been away at the time you received the renewal terms. Getting your coverage reinstated as soon as you are back may be sufficient. Most companies will restart the cover as soon as you confirm and pay the premium. But you are advised to check alternative quotes before renewing with the current insurer. It would not matter that you are already without cover for few days as it would only take you half an hour to go through all your options online.

The real issues will start when you go without any vehicle insurance coverage for about a month. By this time, your insurer will notify DMV of the fact that you do not have any cover. Possibly DMV will follow it up with some questionnaires about your car and insurance. If you still own the car and are driving, you will have to buy at least liabilities insurance. This would be the point state insurance authorities are trying to establish. You will need to fill the forms in due course to avoid getting penalties for non compliance.

Definitely, it is not cool to keep driving the car without insurance. The risks of paying the damages caused to third parties are too high to be taking on your own. Plus you will be facing penalties for breaking the law which enforces minimum liabilities coverage on every driver. Otherwise, you can easily clarify the position with DMV if you have sold the car or taken it off the road. Regardless of how short it is, a lapse in the policy is visible to alternative insurers and authorities.

Quite a few companies may ignore positive driving history once couple of months gap opens up without insurance cover. The most common reason for lapsed policies is missing payment. They are not usually keen to offer low premiums for drivers showing signs of sloppiness. Especially if you have a great driving history going back to a few years, you should not risk it by allowing a policy lapse. It would make sense to talk to the auto insurance company about keeping the coverage. This may be beneficial even when you are not driving or currently do not own a car.

Consider the possibility that you may sell the car and intend to buy a new one shortly. But you may feel that you do not need coverage until then. Actually, your insurer will lower the coverage to minimal level until you buy the replacement automobile when you talk to them. This might be a better option than risking to lose driving history and great discounts as a result.

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Source: http://autoinsurancequoteseasy.com/blog/effects-of-dropped-car-insurance/

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