Lapse in coverage

by diem » Wed Feb 20, 2008 02:24 pm
Posts: 61
Joined: 19 Feb 2008

Each time I've applied for insurance I have been asked if I currently have insurance or have had a lapse in insurance.

Does this affect the price of the insurance in any way? Are they possibly phishing for info on whether you may or may not have been driving uninsured?

Total Comments: 3

Posted: Thu Feb 21, 2008 02:38 am Post Subject:

hopefully my first post will help you out!

A large majority of auto insurance carriers will not write you a policy if you have had a lapse in coverage. Some companies such as Progressive will gladly accept your business.

As far as any increase in price I would say yes, by eliminating companies that are willing to give you a quote you are possibly missing out on a better price.

Posted: Thu Feb 21, 2008 05:52 am Post Subject:

Does this affect the price of the insurance in any way? Are they possibly phishing for info on whether you may or may not have been driving uninsured?



Both are true. If you have a record of driving without insurance they may assign more risk to your application. Failing to maintain insurance continuously may also indicate financial instability. However, phishing may not be the right phrase to describe the urge of the insurance company to gather information. You are somewhat responsible to produce all relevant and true information at the time of applying for the policy. Intentional misrepresentation of information may invite harsher consequences like- denied claim and denied coverage.

Posted: Thu Feb 21, 2008 06:53 am Post Subject:

Yes, they wanna get the true picture out of your finances...payments defaults, wrong claims, false informations...all of these acts may reduce their underwriters' confidence while sanctioning your policy :)

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