When you plan to change insurance providers it is very crucial that you
do not allow a lapse in coverage to take place. Any lapse that is
longer than 30 days will be considered a bad mark against your
insurance record. This bad mark means you will pay higher rates.
Insurance companies believe that a lapse in insurance translates into careless behavior. Careless behavior is considered a high risk when someone is driving. As you can see this thought process can lead to much higher rates. Higher rates will not come down easily and you will find yourself shopping for a new policy again because of this.
When you are shopping for a new policy, instead of renewing your old one, you should start about a month prior to your coverage terminating. This will allow you enough time o shop for the best deal and change policies before your old one expires.
Make sure when you change policy holders that your new company notifies the old company that you have switched. Many people have had troubles because their prior insurance company has notified the state that you no longer carry coverage. In some states the Department of Motor Vehicles will automatically suspend your license if you are not carrying auto insurance on your vehicle.
A lapse in your insurance can also lead to trouble if you are in an accident. When you sign a policy it goes into effect at that very minute and will last until 12:00am on the end policy date. If an accident or other occurrence happens during the time your insurance is lapsed you are in for a lot of problems. You will be responsible, personally, for any monetary damages that happened from the accident. This will also leave you open to be sued and possibly do jail time for not being insured.
The safest thing to do when you own a car is to keep it insured. Even when changing policies it is very important not to allow a lapse in coverage to occur. Make sure you know when your policy expires. This will save you from a lot of problems should anything happen to your car.
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