Thibodaux (985) 448-2590; Raceland (985) 537-4844

Don’t Let Your Car Insurance Lapse… It Will Affect Your Rate

Did you know that letting your car insurance lapse, even if you no longer own a car, may impact your insurance rate? That's right: going without coverage for a certain amount of time, which varies by insurance company, may affect your car insurance rate in the future.

Whether you dropped car insurance coverage because you sold your car and were hiking across the country or just forgot to pay your bill, a lapse in coverage is going to hurt when you renew your policy. Unfortunately, car insurance companies consider you a higher risk than those who diligently keep their policies. Even a one-day lapse in coverage can lead to higher rates.

The lifestyle change

One of the most common reasons for letting car insurance lapse simply is a lifestyle change. You might decide to take an extended trip overseas, give bikes and public transportation a shot, or move to a city where it doesn’t make sense to have a car. All very good reasons to let your car insurance lapse, but none will exempt you from an increased rate in the future.

If you have decided to go carless for a period of time, contact us to learn about low-cost touring policies. They can keep you covered when driving cars you don’t own and will keep your insurance history from having a lapse.

Once you get a car again and purchase car insurance that increased rate will disappear with time (if you drive safely once you get behind the wheel again). You may also find it difficult to find a car insurance company willing to insure you, and when you do your insurance rates will be significantly higher for at least the first six months of your policy. If you find yourself in that situation give us a call so that we can help you find the right car insurance policy to get safely back on the road.