Should I keep an NNO policy just to keep my auto insurance active?

I recently sold my car, and I am not sure if I am getting a new one or not. When I tried to cancel my policy, the agent said that I should keep my policy open and have an NNO policy. Should I?

Answer provided by
Shannon Martin
Answered on Apr 29, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
“Having a lapse in insurance coverage can impact your future rates. Even if you don’t have a car to drive, carriers like to see that you have been able to maintain continuous coverage.
NNO stands for named non-owner insurance. It is usually good for drivers who borrow or rent cars frequently, but don’t own their own vehicle.
Do you think you will rent a car or buy a new car within the next 60 days? If so, an NNO would be a good choice.
If not, then depending on the monthly cost of the NNO policy, you might be better off canceling the policy and paying slightly more for coverage once you own a car again.
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