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High Premiums for Car Insurance Evaders

High premiums for car insurance evaders ought to be expected when previously uninsured motorists go back and get insurance policies for their vehicles. If you want to buy car insurance after a coverage lapse, a higher premium is something you'll likely face. Many people across the country face this exact scenario after driving without insurance for one reason or another for a period of time. The auto insurance industry is not all too welcoming to motorists who have avoided car insurance for some time once they come back into compliance and try to purchase policies, so it's important to try getting Montana car insurance or coverage in whatever state you live in.

Insurance Providers Investigate All Applicants

Auto insurance providers investigate all of their applicants for new policies before they will write a policy for any of them. Part of the process of underwriting and setting rates is taking a look at the driver's past to gauge the risk factor the insurer will face in taking them on as a customer. They look at all kinds of different, such as credit history, driving record, claims history, and coverage history. A period of lapsed coverage indicates to the insurer that you are a high risk to insure. In many cases drivers with lapsed coverage are relegated to non standard policies at first, even when they have good driving records and no claims. This translates to higher prices for the policy holders.

The coverage situation brought on by a driver who has not been insured for some time is a high risk situation for the insurer, same as it would be if the driver presented some other high risk red flag such as a slew of speeding tickets or recent accidents. The potential for higher premiums is very great. In fact, it is almost certain that drivers who have had significant lapses in coverage will be assessed a surcharge on their premiums because of it. Insurers sometimes forgive lapses in coverage, especially shorter ones.

For example, if your policy lapsed at renewal because you were a week late getting the premium in to the insurer for the new policy, in all likelihood the insurer would wipe the slate clean and simply move out the start date of coverage to the date payment was received. But a pattern of late payments and subsequent lapses in coverage demonstrate high risk to the insurer. There is no way for them to know, for example, if something might happen to your car during one of those lapses however brief they might be, and there is always a chance of a policy holder trying to make a claim against a lapsed policy in these circumstances.

Insurers Refuse to Cover Evaders

It must be noted that the prospect of higher auto insurance premiums is not the only risk drivers run when they do choose to get insured after a long lapse in coverage. If you have been driving an old car, for example, and had no insurance on it but bought a new car and are required to get insured by your lien holder, you might be in some trouble. Many mainline adult, senior, or teen car insurance providers do not even offer coverage to drivers who have no coverage history for the recent past or those who have had lapses of a significant length of time. Even with a clean driving record, these drivers are looked at as a bad risk to insure by the providers, and thus usually have to resort to working with high risk specialists and pay much higher rates than they would if they could qualify for standard policies.

Cheaper High Risk Auto Insurance

Even so, it is always better to get insured than to remain uninsured. And it is always possible to save money on rates and get at least a little better deal on your premiums. Some companies accept all drivers regardless of lapses, and simply assign them to preferred, standard, or non standard rates based on their records, same as anyone else. The lapse history is just another component for underwriters to consider.

There are even certain companies who do not punish drivers for a history of auto insurance evasion as long as they have a clean driving record and have no claims against them. It is evident that no matter what the circumstances, drivers ought to be insured; and that there are always opportunities to bring down the cost of coverage regardless of the situation.

There may be high premiums for car insurance policy evaders, but they can save money on their premiums by shopping around to find the lowest priced provider serving their local area. Save on the cost of your policy by getting quotes online. Use the free quote tool at the top of this page and check out prices from insurance companies selling policies where you live. Get insured and fight high prices.

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