Does not having car insurance negatively impact your rates when you reinsure?

I live in Dallas, TX. I plan on canceling my car insurance once I sell my car. I want to get a new car eventually, but don't want to rush buying it. I heard that you are charged higher rates if you don't have insurance continuously. Is that true?

Answer
“Regardless of why you aren’t insured, you may indeed pay a higher premium than someone who has been insured continuously. Carriers don’t often look at the reasons why someone doesn’t have car insurance. While they pull reports from your prior carriers, they consider any type of lapse a risk.
If you’d like to maintain insurance once you sell your vehicle, you could look into quotes for a non-owner car insurance policy. This would provide you with insurance while you don’t own a vehicle.
Another option would be waiting to sell your car until you have found the new vehicle you are looking for. Either option would prevent a lapse of coverage and may save you money in the long run! “
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Emily Maracle
Answered on Apr 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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