Time Period for Risk Assessment?

[Guest]

Hi,

About 6 months ago, I was overcome with bills and let my auto insurance lapse for about a month. I reinstated it as soon as I possibly could, but my payments have gone up by $10 a month. From what I gather, this is because I am now considered a higher risk driver because I let my premium lapse.

My question is, how long will this affect my rates? A year, five years, ten years, a lifetime? I have had no accidents, a single speeding ticket in 2005 which I paid immediately, and have otherwise always paid my car insurance. I can find nothing on time periods for auto insurance risk assessment when I do my Google search. I live in Indiana and currently have insurance with State Farm.

Thanks for your help.

 

[djs]

Ask your agent, he'll tell you.
I can't speak for Indiana, but its usually a short period of time, such as the first renewal or so.

Dan

 

[BlockO]

In Indiana, with the carriers I have, you'll qualify for a prior coverage discount after 6 months of continuous coverage. With some carriers, the discount becomes more generous if they steal you away with a company that you've been with for a long time (over 3 years for example). Also, some carriers offer bigger discounts if you've chosen higher levels of liability coverage as opposed to state minimum levels.

Each carrier does things a little differently, and I'm not familiar SF. But those are a couple things to keep in mind.

 

[Guest]

Okay, thanks. I'll call and ask - if it is 6 months, that's pretty soon if not already. Just wanted to sort of know what to expect before I called.

 

[ginniferhadley]

Hi,

About 6 months ago, I was overcome with bills and let my auto insurance lapse for about a month. I reinstated it as soon as I possibly could, but my payments have gone up by $10 a month. From what I gather, this is because I am now considered a higher risk driver because I let my premium lapse.

My question is, how long will this affect my rates? A year, five years, ten years, a lifetime? I have had no accidents, a single speeding ticket in 2005 which I paid immediately, and have otherwise always paid my car insurance. I can find nothing on time periods for auto insurance risk assessment when I do my Google search. I live in Indiana and currently have insurance with State Farm.

Thanks for your help.

Your auto insurance company can guide you the best regarding this query. Every firm has their own terms and conditions, depending on the policy you have chosen.