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car insurance

How a Lapse in Coverage Affects Your Car Insurance Rates

You need to have auto insurance to make sure that you and your investment in the vehicle are protected. If your coverage lapses, does it affect your rates? That’s the question Broadbent Insurance, Inc. is going to answer here.

The bottom line is that it pays to keep your car insurance in Newark, DE, current. If your policy lapses for whatever reason, or any length of time, you will likely end up paying a bit more when you renew coverage. However, it doesn’t mean you will have elevated rates permanently because they should decrease over time with regular payments and a safe driving record.

The reason you let your car insurance lapse does not matter to the insurer. It makes no difference if you sold your car and didn’t need coverage or you were out of the country for an extended period and weren’t driving. It’s all the same to the insurance company.

The way to avoid raised rates from a lapsed policy is by canceling yours to switch providers. You may have to face a cancelation fee, but it will likely be lower than the amount you will pay due to a lapse.

The most effective way to avoid increased rates is by letting your company know you will not be renewing when the policy expires. It will avoid a cancelation fee and avoid lapse payments. Reach out to Broadbent Insurance, Inc., to learn more.