Gap Car Insurance Coverage

gap car insurance coverage
When a person cancels their car insurance before getting a new policy, they can unwittingly cause their future rates to go up. Most people realize the main factors auto insurers use to come up with rates: car model, accident history, driving record, zip code, marital status, and age. What many people do not realize is having a gap in car insurance coverage can cause your premiums to spike. Believe it or not, going without car insurance can be considered risky in the eyes of insurers.

Lapses in Auto Coverage

When you apply for a new policy, your auto insurance history will be checked out. Insurers will look for any gaps in coverage and especially if you operated a vehicle while not insured. A gap of coverage is simply anytime you went uninsured. Motorists that are not insured are considered high-risk drivers and are charged higher rates by insurance carriers. There are many reasons why someone might have a lapse. Some typical reasons include:

*  Your license was suspended or you lost it and decided to let your insurance lapse
*  Your insurers went bankrupt and your policy was canceled before you got insured elsewhere
*  Your auto insurance provider terminated your policy
*  You moved overseas and canceled your coverage
*  You did not pay your bill and your policy was canceled by your insurer
*  You lost your job or for other financial reasons stopped coverage
*  You sold your vehicle
*  You canceled your policy on your old car because you are getting ready to buy a new vehicle

How lapses in Coverage affect insurance costs

You might think that canceling your automobile insurance policy will save you a lot of money. While this might be true in the short run, over the long haul, you could end up paying a lot more. This is especially true if you think canceling a policy for a month or 2 because you are getting ready to buy a new vehicle will help you. The odds are that your new policy will end up being needlessly more expensive, and you surely don’t want that.

Insurers will take a detailed look at your vehicle insurance history, and if you have multiple lapses in coverage, you may be tagged as a “high-risk driver.”  When you shop for a new policy, you might be shocked that your premiums have shot up by 30% or more from your prior rates. Even worse, if you were involved in vehicular accidents while uninsured, you may get denied by major auto insurance carriers.

You might then be forced to get insured with a high-risk carrier for outrageous rates, which could send you to the poorhouse. If you are caught for DUI or driving while intoxicated without ins, you will be required in most states to obtain an SR-22 before you can be legally insured again. The lesson here is simple, if you drive, always carry insurance and obey all the traffic laws.

The High Price of Driving Uninsured
Each state sets forth their automobile insurance laws and mandates. While states have different regulatory insurance variances, carrying valid auto insurance is the law in all states. If you are driving a vehicle, then there is no way to get around having insurance coverage. If you get cited for driving without auto insurance, you can be penalized severely. These enforcements include:

*  Hefty fines can be levied against you. In some states, a second offense can result in a penalty of $1,000 or more
*  Your car can be impounded, which is very expensive
*  Your drivers license can be suspended
*  On repeat offenses, you may be sent to jail
*  You may be required to get an SR22 – financial responsibility certification – that you must carry while driving

All of these penalties carry a high price and cause severe financial damage to most people. If someone goes to jail, he or she may lose his or her job and have a bad record to deal with for the rest of his or her life. Driving uninsured is just plain not worth it. If you cannot afford automobile insurance, then find other transportation means until you can. If you need low-income auto insurance, check to see if your state has special programs, that can get you discounted rates that you can afford. Just make sure you never drive a vehicle without having the minimum state mandated automobile coverage.

Getting covered again after a Gap in Car Insurance Coverage

If there has been a short gap in your policy, contact your insurance provider right away. Some carriers have grace periods, and you might be able to get your policy re-instated without any penalties. Most companies do not extend grace periods for more than a month, so this does not apply to those who have gone several months without being insured.

If your company terminated your policy, you need to shop for auto insurance right away. The best place to start looking for gap car insurance coverage is online, with companies like good to go insurance. In just a few minutes, you will be matched with several providers and their lowest rates for the coverage you want. Apply for your personalized quote and get covered again for less.