How Car Insurance Quotes Are Affected By A Lapse In Coverage
Finding cheap car insurance quotes can be challenging enough. Having a coverage lapse makes the search for affordable coverage even tougher. However, lapses in coverage do occur and there are ways to overcome it. Knowing what can lead to a lapse in coverage can help you avoid it.
Having a coverage lapse is one of the last things you want when it comes to your car insurance. This occurs when you are without coverage for any length of time. If your coverage expires and you are without car insurance for as little as one day before getting a new one, this results in a lapse in coverage. The most common cause for lapse in coverage is due to not making payments on time. When you miss a payment and your coverage lapses, cheap car insurance quotes may be tough to find.
Some insurance companies may excuse a brief coverage lapse as a result of a late payment; however, the lapse will still appear on your coverage history. Regardless of whether you make the payment a day or two after your coverage has expired, the new effective date will appear as the day your insurer received payment. Any lapse on your coverage history will hurt your chances of getting cheap car insurance quotes.
Think of it in terms as having bad credit. When you have a poor credit history it makes purchasing certain items, such as a car, much harder and more costly. Your coverage history is no different. A poor coverage history due to lapses can ruin your status with the insurance company and cause your premiums to increase.
Prevent a coverage lapse from happening by setting up automatic payments from your bank account. This will improve your standing with the insurance company and finding cheap car insurance quotes. Most insurance providers will even offer a discount for setting up automatic payments.
In the event that you fall short one month and you overdraw due to your payment, the most you will pay is the overdraft fee from the bank. This may be $35 or more, but it beats having to pay more on raised premiums as a result of a lapse. Furthermore, an overdraft on your bank account won't harm your coverage history or even your credit score.
Avoid having a coverage lapse in order to maintain a respectable coverage history. Always be sure your payments are made on time. Don't let yourself fall behind as it makes getting coverage much harder and more expensive in the future. If your current policy is getting too expensive, you can easily find cheap car insurance quotes and compare rates for a better deal.