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FAQ: Choosing Auto Insurance Coverage
Why do you ask how long I’ve had auto insurance coverage?
This question may seem strange, but it’s actually quite typical for auto insurance companies
to ask drivers how long they’ve had auto insurance coverage. Many insurance companies use information
about your auto insurance history to help them determine a rate that is specific to you. Of course the
insurance company can never know the real you, so they have to base their rates on tangible facts,
like insurance history, instead.
Insurance companies like to see that customers have a history of consistent, continuous auto
insurance coverage. Drivers with gaps in their auto insurance coverage may get charged a higher rate
because, to insurance companies, they appear more risky to insure.
When you do decide to purchase new auto insurance, always remember to buy your new policy
before your cancel your old one. Having even a one-day gap in your auto insurance coverage could make
you look risky to an insurance company. In most states, driving without insurance is illegal. You may
think you’re saving money by allowing your insurance to lapse, but even a simple fender bender could
end up costing you much more out-of-pocket!
Just as you need to protect your assets, so do auto insurance companies— that’s why they
charge higher rates to drivers who demonstrate "risky behavior" and reward drivers who have a good
driving history. It’s important to drive safely so you can keep accidents and auto insurance claims
off your record.
Fortunately, Esurance makes switching your auto insurance policy hassle-free. Unlike other
companies that can make you wait up to 30 days for your policy to take effect, Esurance only takes
48 hours to process your insurance information. Once you buy your Esurance policy, you can access the
form you’ll need to cancel your previous auto insurance coverage. You may even get a partial refund
from your former auto insurance company for the unused portion of your pre-paid premium. How’s that
for instant savings?
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