Did you know that letting your car insurance lapse, even if you no longer own a car, may impact your insurance rate? Whether you dropped car insurance coverage due to a lifestyle change, an extended trip, or other reasons, a lapse in coverage can have consequences when you renew your policy.

Why a Lapse Matters

1. Higher Risk: Car insurance companies view lapses as a higher risk. Even a one-day lapse can lead to increased rates.

2. Legal Penalties: Driving without coverage can result in legal penalties—fines, license suspensions, and even jail time. Some states require a minimum level of car insurance for legal driving.

3. Insurance History: A lapse affects your insurance history. When you get a car again, insurers may classify you as high-risk, impacting your eligibility and rates.

Stay Covered

If you’re going carless for a while, consider low-cost touring policies. They keep you covered when driving cars you don’t own and prevent lapses in your insurance history.

Remember, once you’re back on the road, safe driving will gradually reduce the impact of any previous lapse. If you need assistance finding the right car insurance policy, give us a call—we’re here to help you drive safely!