Four Reasons to Have Continuous Coverage
You've probably heard it's a good idea to avoid a lapse in car insurance coverage, but what if you're leaving the country for a few months, your car is in storage or you only drive a friend's car occasionally? There may be situations where it seems appropriate to cancel your car insurance, but the truth is, doing so can have expensive and lasting consequences. Here are four reasons to avoid a lapse in insurance coverage.
- It's the law – Most states require that you have at least minimum auto insurance coverage, even if you don't drive often. Keeping continuous coverage can help you avoid costly fines and even license suspension if you're caught driving without insurance.
- Potential damage to a car in storage – If your only mode of transportation is in storage or not being driven for a long period of time, you should still keep continuous coverage. Comprehensive coverage is for damage to a car that isn't caused by a collision, which may include vandalism or a falling tree branch.
- Avoid higher insurance rates – When writing insurance policies, insurers look at a lapse in car insurance coverage as a potential risk factor. If you've had a gap in coverage or a less-than-perfect driving past, there are ways to find affordable car insurance for high risk drivers, but the premiums could still be higher than average.
- Stay covered while driving a friend's car – You should always be covered by auto insurance before getting behind the wheel, even if you're in someone else's vehicle. If you're driving a friend or relative's car and cause an accident, you could be held legally and financially responsible.
So what's the best way to avoid a lapse in insurance coverage? Stick to a monthly budget to ensure you don't miss a payment. Keep your car insurance policy up-to-date, even if you don't plan on driving for a few months, and consider setting up automatic payments or paying upfront for your insurance policy to guarantee continuous coverage.
The provided information and safety suggestions were obtained from sources believed to be reliable and is intended for informational purposes only. Senate Select Insurance and its affiliates assume no liability in connection with providing it or your use of it. Your circumstances may not warrant or require some or all of the safety suggestions, and there may be additional available safety procedures that are not referenced on this webpage.