does car insurances check for continuous coverage for prior years?
Wednesday, September 30th, 2009 at
12:44 am
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Julia asked:
i signed up for a quote on car insurance and it asked me if i could demonstrate continuous insurance coverage for 3 years. i put yes but now think i havent. i purchased the quote. will they check? i dont want to tell them because my rate will go up. if they do check what could happen?
Brent
i signed up for a quote on car insurance and it asked me if i could demonstrate continuous insurance coverage for 3 years. i put yes but now think i havent. i purchased the quote. will they check? i dont want to tell them because my rate will go up. if they do check what could happen?
Brent
Tagged with: Car Check • Car Insurance • Continuous Coverage
Filed under: 1256
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Danny
Good morning! The company does have the right to require proof of prior coverage from you. If they do. and you can not provide it, your rate will go up. If they do not ask you may have gotten away with it. Generally speaking, you may not actually find you are without coverage, but if at any time the company finds out one way or another that you were without continuous coverage, they will increase your rates.
My opinion is that it would be better to tell your agent now and start paying a bit more per month, rather than have to pay a large chunk of money later when your premiums are increased all of a sudden.
Good luck to you!
David
If they ask you for the proof of prior insurance, you will be required to provide the proof. If you did have prior insurance, you can contact your prior insurance agent or company for this proof. If you were only covered for some of the last 3 years let’s say 1 or 2 years send them that proof, they will then revise your premium accordingly (i.e. they will remove part but not all the discount for having continuous insurance). If you were not covered at all for the prior period, you will need to let them know if they ask (and only if they ask–don’t volunteer). The insurance company will then either remove your discount thereby resulting in an increase of premium to you or if you no longer qualify for the program that they placed you in, they will send you a notice of cancellation. The cancellation notice will give you enough time to go and get replacement coverage.
Contrary to what two of the posters have alluded to the company will not void out your coverage leaving you bare at the time of an accident. They can cancel your policy effective anywhere from 10 to 30 days from the day of the notice (depending on your state rules for cancelling policies) but they cannot void your policy for this.
I hope this gives you peace of mind. Good Luck!
Barry
Yes, they’ll check. When you can’t provide it for them, the rate will go up. If you don’t pay the higher rate, they’ll cancel the policy.