How will a 30+ day lapse in insurance coverage affect switching insurance companies.?
I was with State Farm and they suddently raised my insurance from 87 dollars (this is liability and renter’s insurance) to $117 to 200+. I was never able to pay that amount at once seeing as I am a student with a part time job.
I have recently been looking for a new insurance company and notice they are asking about lapses in coverage. I have not had car insurance (and not been able to drive)since December 10th. How will this affect my next insurance rates.
Tags: affect, Companies, Coverage, Insurance, Insurance Company, lapse, switching
With most preferred companies, one of the requirements to qualify for the “better” rates is that you have carried previous insurance continuously for a certain amount of time. This varies by company and can be anywhere from 1 to 5 years. Some companies will allow a lapse of up to 30 days or so and still be able to qualify for preferred rates while others will not.
The previous insurance requirement serves a couple of purposes:
It demonstrates responsibility and maturity on your part. People that carry continuous insurance are generally better risks for insurance companies.
It also provides a verifiable driving record. When you have insurance, if you have claims there will be records of those claims. This enables the insurance company to better underwrite the risk and charge the appropriate rate.
So by now you probably realize the importance of keeping your insurance coverage current. You should attempt to reinstate your policy or obtain new coverage soon before you see a big jump in rates.
Good luck!
Did you ask your agent why your premium went up so much? Did you change cars, move, have tickets or accidents, lose good student discount?
I would call your State Farm agent and ask them how much it would be go to back with them. I bet that increase was a temporary adjustment for something that changed.
Since laws are different in every state even in the same company you would need to post what state your in. So, just call your State Farm agent and ask them for a quote to go back to them before shopping around and moving on.