When you sell your car and subsequently cancel your insurance policy, there is a possibility that your rates could change when you purchase a new vehicle and seek insurance once again. Insurance rates are influenced by several factors, including your driving record, the specific make and model of the new car, and current market conditions for insurance coverage. Additionally, a lapse in coverage, which can happen if you cancel your policy and do not maintain continuous insurance while you are out of the country, could also impact your rates.
To minimize the impact on your insurance rates upon your return, consider the following:
Non-Owner Insurance: While you do not have a vehicle, consider maintaining a non-owner insurance policy. This type of policy ensures that you have continuous coverage and can help you avoid higher rates due to a lapse in insurance.
Evaluate Insurers: Insurance companies offer different rates based on their own risk assessment formulas. Shop around and compare quotes from multiple insurers to find the most competitive rate possible when you repurchase a vehicle.
Consider Vehicle Type: The type of car you buy will affect your insurance rate. Vehicles with high safety ratings or those that are less expensive to repair typically have lower insurance premiums.
Discounts and Loyalty Programs: Some companies offer discounts if you’ve been a customer in the past or have bundled multiple policies (like home and auto insurance). Inquire about any potential discounts you might qualify for to help reduce costs.
By taking these steps, you can help ensure that when you return and buy a new vehicle, your insurance rate remains as favorable as possible.
