Auto insurance companies are not a very forgiving group; their rather cynical worldviews foster the idea that people will repeat their mistakes and imperfections. Consequently, it’s very important for you to try and maintain a squeaky clean record for your insurance coverage. When the insurers price their policies, they try to figure out how long that the policy will be kept by people who buy it. Given this, if your insurer thinks you will be holding the policy for a long time, they will charge less for a given policy and is thus very good for you. If there are lapses in your coverage, carriers may charge you up to 20% higher, or even refuse you coverage. Here’s what you can do to avoid bad news bears.
Be on time.
Missing a bill payment is the easiest way to get your policy terminated, after which you will have an unnecessary lapse in your coverage record. Always pay your bills within 15 days after the due date.
Keep your policy even if you’re not going to drive, or be without a car for an amount of time.
In the short term, it may seem wiser to cancel your policy for a while if you’re not driving for an extended amount of time. However, even if that time is 6 months or an entire year, think about keeping the basic coverage; carriers can penalize you for not having maintained a continuous coverage for the prior 3 years. Weigh the long-term against the short-term costs.
When switching carriers, overlap the coverage.
If you decide to switch carriers, time it so that you don’t miss even a day of coverage. You can do this by checking your current policy’s expiration date, and set the new policy to go into action on or before that date. The same idea is applied when dealing with canceling a policy to replace it with another – overlap the end/beginning of the policies so you’re guaranteed to be continuously covered.
If you have any more questions on auto insurance or are looking for a reliable carrier, feel free to visit CoverHound.com!