Choosing A Better Insurance Plan

Practical Ways To Avoid Gaps In Auto Insurance Coverage

by Isabella Torres

Auto insurance companies are suspicious about coverage gaps. If you experience a gap in your coverage, you should expect an increase in premiums when you resume your coverage. As such, you should do your best to maintain coverage at all times. Below are some ways you can use to avoid a gap in coverage.

Lower You Premiums

Lack of money is one of the top causes of coverage gaps. Trimming your insurance rates as much as possible can help you afford the payments. Get rid of unnecessary coverage, remove dangerous drivers from your policy, combine your insurance policies to get a multi-insurance discount, and ask for all discounts you can get to help you lower your rates.

Prior Budgeting

Don't wait until your auto insurance is up for renewal to start looking for the money. Make your auto insurance payments part of your home's budget. Indeed, it may be better to borrow money elsewhere rather than default on your insurance premiums.

Automatic Or Lump Sum Payments

If you are generally a forgetful person, set automatic or lump-sum payments to reduce your risk of missing the payment deadline. Most financial providers, such as banks or credit card companies, have arrangements that allow their clients to make automatic payments without further reminders.

Set Up a Reminder

Set up a reminder if you don't want or can't afford to make lump sum or automatic payments. There are even mobile applications that can help you set reminders, but you are free to use your preferred method.

Proper Cancellation or Switch

If you no longer need your insurance coverage, don't assume that the insurance company will cancel it once you stop remitting your premiums. Failure to remit premiums will trigger a premium default, which will create a lapse in coverage. Therefore, whenever you no longer need coverage from a company, ensure you follow the right procedures to cancel the coverage. If switching from one company to another, ensure that the new one is in place before canceling the old one.

Non-Owner Coverage

You should have insurance coverage even if you don't need it. For example, you should still have a policy in place even if you don't have a car or you won't be driving for a while. Purchase non-owner insurance that gives you minimal coverage at affordable prices.

Secondary Driver Listing

An alternative to non-owner insurance coverage is to get listed as a secondary driver in another policy. A family member can add you to their policy until you can get your own coverage.