Consistency is Key!
- What happens when you sell your car and don’t have a replacement vehicle to add to your policy?
- What if you are in an accident and your vehicle is totaled, what do you do with your car insurance?
- Do you let your car insurance cancel?
- Do you let your policy lapse and look for another carrier when you find a new car?
- Why keep an active auto policy when you don’t have a vehicle?
These are all great questions, and all have a simple answer that applies in most situations. Do NOT cancel your auto insurance. Do NOT let your auto insurance lapse. Do NOT stop paying the premiums for your auto insurance.
As the title of this blog states, CONSISTENCY IS KEY!!
Although it may seem silly or unimportant to have an active auto policy without a car, it is very important that you keep your car insurance active. Most preferred insurance carriers require prior insurance in order to insure your vehicle. If you have a gap or lapse of auto insurance, you could get stuck paying a much higher premium.
Additionally, the liability portion of your auto policy will continue to follow and protect you if, and when, you are driving someone else’s vehicle and they do not carry adequate coverage. Your auto insurance will also continue to protect you if you are in an accident with an uninsured or underinsured driver. (In both instances, the vehicle owner’s insurance would most likely respond first, but yours would come in to play second if there was not enough coverage.)
What about the cost of keeping the car insurance going?
You may not want to continue paying the premium for your auto policy if you are without a vehicle, to try and save money. However, once you do have a vehicle to insure, you will be saving money by continuing to carry auto liability insurance because you will be able to remain a part of the preferred market when you add your next vehicle. To help with the expense, you can reduce your policy coverage to carry just liability limits while you are without a vehicle; deleting your comprehensive and collision coverage. Temporarily carrying less coverage than you would if you owned a vehicle could reduce your premium substantially!
What is the preferred market that was just mentioned?
Preferred markets are referred to as preferred or standard because they have higher standards and requirements for the insured to follow, but they also tend to have better coverage, rates, and customer service.
Conclusion
If something happens and leaves you without a vehicle, please contact your agent for further assistance. Your insurance agent is there for a reason; we are here to help you and have your best interests in mind. At Strand Insurance, we will present you with facts and options in order to help you make an informed decision.
