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?
Apr 20, 2021
Answer provided by
Answered at Apr 20, 2021
“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! “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
What is a car loan charge-off?
I've never heard this term before. What does it mean for a borrower?
Apr 07, 2021
What is gap insurance and why do I need it?
"Do I need gap insurance if I already have full coverage? What does it cover? "
Apr 14, 2021
What does a negative gap mean with gap insurance?
I was involved in a not-at-fault accident and my car was marked a total loss. I have gap insurance and tried to submit a claim. However, my lender told me I had a negative gap and wasn't able to claim anything, especially since my vehicle had prior damage. What should I do?
Apr 21, 2021