Why do you ask how long I’ve had auto insurance coverage?
This question may seem strange, but it’s actually quite typical for auto insurance companies to ask drivers how long they’ve had auto insurance coverage. Many insurance companies use information about your auto insurance history to help them determine a rate that is specific to you. Of course the insurance company can never know the real you, so they have to base their rates on tangible facts, like insurance history, instead.
Insurance companies like to see that customers have a history of consistent, continuous auto insurance coverage. Drivers with gaps in their auto insurance coverage may get charged a higher rate because, to insurance companies, they appear more risky to insure.
When you do decide to purchase new auto insurance, always remember to buy your new policy before your cancel your old one. Having even a one-day gap in your auto insurance coverage could make you look risky to an insurance company. In most states, driving without insurance is illegal. You may think you’re saving money by allowing your insurance to lapse, but even a simple fender bender could end up costing you much more out-of-pocket!
Tags: auto, COVERAGE, insurance, Ive
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