No one wants to pay more than they have to for auto insurance.
You probably know that getting a moving violation or having an at-fault accident can increase your premium.
But what you may not know is that a lapse in coverage can also be a costly mistake.
You might be asking yourself, “What’s a lapse in coverage?”
A lapse, or insurance gap, is a period of time when you’re not covered and don’t have auto insurance.
Even going one day without auto insurance means the rate on your next policy could go up as much as 17%, depending on the state where you live.
Going 45 days could cost you an additional 35%!
Here are some tips to prevent your rate from skyrocketing due to a lapse:
#1: If you plan to travel for a few months and won't use your vehicle, call your insurer and explain the situation before cancelling your policy.
#2: Consider dropping just the liability and collision portions of your policy and maintaining your comprehensive coverage. That would protect you against damage due to disasters, such as a fire, a falling tree, or theft.
#3: If your rate has already increased due to a coverage lapse, shop around for a lower rate. Every insurer evaluates a lapse in coverage a little differently.