Will a lapse in my auto insurance affect my future rates if I don’t own a car for a few months?
As a grad student living in a city with excellent public transportation, I primarily get around by bike and bus, especially now that winter is behind us. I recently had an accident that resulted in my car being totaled. While I have some savings to buy a new car, I’m considering taking a break from car ownership for the spring and summer for health reasons. Will this gap in my insurance history negatively impact my rates with insurance companies down the line?
Yes, a lapse in your auto insurance can potentially affect your future rates. Insurance companies generally view lapses as a risk factor. If there is a gap in coverage, they may interpret it as an indication that you are a higher-risk driver, which could lead to higher premiums when you go to insure a new vehicle in the future.
However, since you’re considering being car-free for health and practical reasons, it’s worth noting a few options to avoid a lapse in insurance. You might consider switching to a non-owner car insurance policy, which can cover you if you occasionally borrow or rent vehicles without a vehicle of your own. This way, you maintain continuous insurance coverage and avoid potential negative repercussions when you do decide to get a new car.
Ultimately, it’s good to weigh your options before making a decision. If you’re committed to being car-free for a while, make sure to check how various insurance policies apply to your situation to find the best solution.