why do auto insurance companies ask if you have coverage currently?

Barbara L

New Member
here in good ole southern california, where it is law to have car insurance, they charge you more if you do not have current coverage, or if it has lapsed over 90 days.
 

mbrcatz17

Rookie
It's a rating factor. There's a discount if you have prior coverage with no lapse. The time period varies from company to company, between six months to several years, with one year being the most common.

If you say yes, they're going to ask for proof - either a renewal notice, or a letter from the company. If you say no, they're going to surcharge you - or maybe even decline to write you at all.
 
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