Question

If my insurance company back pays upon cancellation will it look like a gap in my coverage?

My fiancé and I are being dropped by our car insurance company because we didn’t disclose our roommate at the time of renewal. They said they will refund us all the money from our renewal last June, close to $4,500. When we look for new insurance coverage, will we have to back pay for that time at the new premium price that they set, or will they just require their normal payment for our policy?

Jun 15, 2019 Tampa, FL

Answer
Ross Martin

Jun 15, 2019

Your new insurance company will not make you back pay when you start your policy. However, having a lapse in coverage does increase the rates. The longer you maintain continuous coverage the better your rates will be. Check out this article for more information on finding car insurance after a lapse in coverage.

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