It’s important to try and not allow a gap in your car insurance coverage, as insurance companies will view this negatively, and many will increase your rates, which in turn has lasting effects on your driving record. Even a one day lapse in coverage will cause your current or new insurers to increase your rates, it being seen as a default on payment and potential liability in the future. One way to prevent even a one-day lapse in payment is to do an auto-withdrawal arrangement with your bank, so that a payment is never missed. One major effect of never having a gap in your insurance coverage is that you will most often be able to get much lower car insurance quotes. With your lower, more-affordable insurance, you will then have an easier time making your payments, and so on.
Getting a lower car insurance quote doesn’t rely only on making regular, on-time payments, of course. You must have a clean driving record, and be over 25 years of age, generally. The best advice given to younger drivers is, “Don’t cause accidents or get any tickets. Keep your record clean.” But nobody thinks to say, “Be sure not to miss a payment, or your rates might go up,” though they should. It is especially important for younger drivers to heed this advice, and make sure they don’t set themselves up for some unpleasant results with their car insurance carrier.
Seen over a period of years and decades, making sure you have no gaps in your insurance coverage can result in saving drivers thousands of dollars. There are, of course, other reasons for not having a gap in your insurance coverage. Incurring an accident, theft or other liability during a lapse in coverage would be a bit disastrous. Having an accident or other moving violation during a gap in coverage will also get you in trouble with law enforcement, resulting in a rather large ticket for having no insurance, which makes the situation much worse in terms of your driver’s record.
It’s very much worth the extra effort to make sure there are no gaps in your car insurance coverage. Don’t be confused with Guaranteed Auto Protection (GAP) coverage, which is for those financing or leasing automobiles with little or no money down, for total loss protection. There is no extra rider in insurance policies to cover gaps in insurance coverage or late payments, though there should be. This is more incentive than ever to keep your payments on time, all the time. Don’t get caught in a vicious cycle of late or gaps in payments, which causes higher premiums, higher car insurance quotes, and more car insurance companies who consequently offer cost-prohibitive rates.
