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Gaps in Coverage
What are gaps in coverage?
Gaps in coverage refer to the amount of time that falls between when your previous car insurance policy lapsed and when your next car insurance policy began. Whether your insurance lapsed because your policy was cancelled by the company, because it was cancelled by you, or because you got rid of your car doesn't matter. If there was ever a time that you had car insurance and then didn't – and then purchased car insurance coverage again, then you have gaps in coverage as defined by most auto insurance providers.
How do gaps in coverage affect my rates?
Gaps in coverage aren't doing anything to lower your car insurance premiums. Insurance providers view lapses in coverage as a sign that you may default on your policy, skip payments, or are, in general, an irresponsible person which means you have the potential to cost them a great deal of money in claims. Any hint that you may cost money will raise your car insurance rates, and a gap in coverage falls into that category.
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Is there any way that gaps in coverage can help lower my insurance rates?
Only if you don't have any. If you do have gaps in your coverage, though, work on making sure that it doesn't happen again. This means that even if you sell your car and have a month or two or more without any vehicle to insure, don't cancel your insurance! It will cost you more money in the long run through increased car insurance rates than it will to pay for a few months of unnecessary coverage.
What is the difference between 'a gap in coverage' and 'gap coverage'?
A Gap in coverage is the time that lapses between car insurance coverage. Gap coverage is an insurance policy that covers those who lease their vehicles in the case that their standard coverage doesn't give them as much as they need. It's an optional policy, an extra item, whereas a gap in coverage is one of the many things that an insurance provider will look at when determining the rates to quote you.
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