About proof of insurance
POI verifies that you had prior car insurance coverage with another company for a specific amount of time before buying your current policy. A lapse (or several lapses) in car insurance coverage can lead to higher premiums, so the longer you've
been consecutively insured, the less you can expect to pay for your car insurance policy, in general.
When you get your Esurance quote, we ask you how long you've been continuously insured. And when you buy the policy, we use your answer to help calculate your final rate.
We'll try to verify your POI with your prior insurer ourselves. If that's not successful, we may ask you to submit POI soon after you buy. If you don't submit it within a given time frame (and don't worry, we'll follow up in case you forget), your rate may be adjusted based on the missing information.
Your rate can go up because of a missing POI if you indicated you had prior insurance coverage when getting your quote or if the declared limits were inaccurate. The good news is that you can still provide the POI anytime before your policy renews to get your original rate.
Who needs proof of prior insurance?
Insurance companies aren't the only ones who want to see your proof of insurance. After you cancel a policy or leave an insurance company, that company may need to alert the state's Department of Motor Vehicles (DMV). This is a precaution that
states take to track uninsured drivers and help keep them off the roads. If a state is notified that you're no longer insured, your registration could be suspended until you provide proof of insurance.
Your new insurance carrier might let the state know that you're insured again, but if they don't, you may need to file POI with your state's DMV.
Depending on your state's laws, your prior insurance company might also ask for POI from your new company, since they're the ones who have to report to the state that you've dropped them as your carrier.