What a gap in coverage does to your car insurance price

What counts as a lapse

A lapse is a period when the coverage your state requires isn't in force on a car you own or have registered. It doesn't have to be long, and it doesn't have to be on purpose. Most gaps start with something ordinary:

• A missed payment. The insurer cancels for nonpayment after its notice period, and the policy ends on that date whether or not you read the letter.
• A switch done in the wrong order. You cancel the old policy first and the new one starts a day, or a week, later.
• A car you stopped driving. New York's DMV says coverage has to stay in force as long as the registration is valid, even if the car sits unused, and Florida's motor vehicle agency tells owners to turn in the plate before cancelling.
• A move or a sale. You sell a car, buy the next one weeks later and are uninsured in between.

The gap runs from the moment one policy ends to the moment the next one starts. Your declarations page lists the effective and expiration dates; compare the two before you cancel anything.

Many states now check coverage electronically. North Carolina insurers must tell the NCDMV when a policy lapses or is canceled, and Virginia's DMV checks insurance on Virginia-registered vehicles with insurers. A gap you didn't notice can still reach the state.

How a gap moves your premium

When you apply, insurers ask whether you have been insured and for how long, and a recent gap can move you into a more expensive tier. How much depends on the insurer's filed rating plan and on how long the gap lasted, so there is no single figure to expect. What state regulators do say is that the effect is real. Missouri's Department of Commerce and Insurance notes that state law doesn't stop an insurer from placing a driver in a high-risk policy after a 30-day lapse.

Some discounts also depend on staying insured. In Maryland, the good-driver discount insurers must offer goes to drivers with no moving violation carrying more than one point and no traffic accident in the past three years, and it also requires continuous coverage from that insurer. If a gap leads to a license suspension, the suspension itself goes on your driving record, which affects prices for years.

What states charge for driving uninsured

An SR-22 is proof of insurance that your insurer files with the state for you. It isn't a type of coverage: it certifies that you carry at least the liability your state requires. Virginia requires one for three years after an uninsured-driving suspension. New Hampshire's DMV requires one after any DWI, after leaving the scene of an accident or after a second reckless operation offense, and says a license or registration can't be restored or kept until the filing is in place.

The state amounts are only part of the cost. Any damage you cause while uninsured is yours to pay, and the suspension or offense behind an SR-22 stays on your record for insurers to see. Our state pages for Virginia and North Carolina show the rules alongside what drivers there pay on average.

If you don't have a car right now

A gap is harder to avoid when you have nothing to insure: you sold a car, moved to a city, or share a household vehicle you aren't listed on. Before you go without coverage, ask two questions of an agent or of the insurers you are likely to use later.

• Is a non-owner policy available, and would it count as prior coverage? Some insurers offer liability coverage for people who drive but don't own a car; availability and terms vary. Whether a later insurer treats it as continuous coverage is its own rule, so ask before you buy.
• Can you stay listed on a household policy? If you drive a family car regularly, being listed as a driver may keep your history unbroken.

If the car is still registered, check your state's rule before dropping coverage. In states like New York and Florida, the plate or registration has to be turned in first, or the state treats the car as an uninsured vehicle.

How to avoid a lapse, or recover from one

1. 1 Start the new policy first. When you switch, set the new policy to begin on or before the day the old one ends, then cancel the old one in writing. Our guide to switching insurers without a gap walks through it.
2. 2 Put payments on autopay and keep the insurer's notices going to an address and email you actually read.
3. 3 Answer a cancellation or termination notice right away. Call the insurer before the date on the notice and ask what it takes to keep the policy in force. After that date, the gap has already started.
4. 4 If you have lapsed, buy coverage now and answer the application accurately. Insurers ask about prior coverage, and every day without it adds to the gap.
5. 5 Compare several quotes. Insurers weigh a gap differently, so compare quotes line by line. If regular insurers refuse you, your state's assigned-risk plan is the fallback.

Questions drivers ask