Why You Should Keep Continuous Coverage on Your Auto Insurance
It’s very important to have continuous coverage on our car insurance. If a 35 year old driver lets his policy lapse, then he will have big problem on her or his next insurance policy. He might have a good driving record, but he may not be able to get insurance again at a standard company.
A First Time Driver?
It’s now like he is now a first-time driver. Continuous coverage is one of the most significant things that insurance companies look when considering a new policyholder. Regardless of past history, if you’re unable to document at least six months of past insurance coverage it’s enough to disqualify you from a standard auto insurance company.
In such cases a high-risk company is often the only alternative. To prevent a first time car insurance issue, you must keep your insurance continuously. When a person does not own a car, he can still get insurance via the non-owned auto insurance policy. The type of insurance insures the driver rather than the vehicle.
Obtaining A High-Risk Policy
But what if you did not maintain your continuous coverage and you cannot acquire the normal car insurance? The next step might be tricky. The companies specializing in high-risk insurance will take on drivers who document previous coverage cannot must write the policy. And it’s expensive.
Here’s the good news: if the insurance policyholders have good driving records, they will only be with high-risk company for a short time. Some standard companies will take on new drivers after they have their insurance for six months without having an accident.
Unless there’s a ticket or accident during that period, it’s not often needed for the new driver to maintain in coverage with a high-risk company. It doesn’t take long to graduate to a standard company.
Getting a Non-Owned Policy
In high-risk companies, the non-owned policies are sometimes available. If you have no car but you are planning to purchase one, a non-owned policy might be necessary to start the all important insurance history sooner rather than later.
When the driver is ready to move to a standard company, it’s normally a seamless process. The company simply transfers the driver’s information. Proof of prior insurance is already there. When a driver wants to change companies, he must provide proof of coverage to his new company.
That proof of coverage is an insurance liability card or a policy declaration page documenting six months of continuous. The policyholder must still start the process. Or else he might just be renewed in high-risk company and pay more premium than necessary.
Why Keeping Continuous Coverage Helps
Keeping continuous coverage on your auto insurance will improve your eligibility for a policy now. If you have not had continuous coverage, it is often assumed that a former insurance company canceled his policy.
It’s also possible that the driver drove without auto insurance, which is illegal. Better to keep coverage to avoid paying high-risk premiums.
Copyright (c) 2010 Todd Clay