Why Is It Important to Maintain Continuous Insurance Coverage in Palm Beach Gardens, Fl?

Continuous coverage refers to having insurance coverage without any lapses. It is important in the context of whether it would be life insurance in Palm Beach Gardens or car insurance in Palm Beach Gardens, as it may have legal ramifications, leave the person susceptible to financial hardship due to an unexpected event, and affect premium rates and eligibility. When you buy insurance, or it may be commercial building insurance in Palm Beach Gardens, Florida or commercial flood insurance in Palm Beach Gardens,   you’re considered the “policyholder.” You’re also the person financially responsible for paying the premium. Continuous coverage is important for many reasons.

In terms of auto insurance, the majority of states require a minimum amount of coverage; thus, a lapse in coverage may result in legal troubles. Moreover, if an individual gets into an accident while uninsured, they will end up paying out of pocket to fix the vehicle. Lastly, they may also see a significant increase in their premium rates once they purchase a new policy. Therefore, it ends up being far more affordable to simply maintain coverage in the long run.

This gets into some of the technicalities within the insurance world, but it’s important to understand that a person can be a covered driver—legal and fully protected in case of an accident—and not have continuous coverage. It all comes down to who “owns” an insurance policy.

For commercial insurance, for instance, continuous insurance coverage shows stability within a business, which is something carriers reward. Letting your policy cancel (or lapse), even once, can impact your insurability with insurance carriers. A lapse in coverage will cause a business to lose goodwill with company underwriters.  In most instances, insurance agents must show why your business is a good fit for an insurance carrier. If your business has a lapse or several cancels over some time, the number of underwriters who want to write the policy will diminish. Which means your premiums will most likely be higher.

Luckily, if you’re buying a policy for the first time you can pretty much count on your rate going down as you prove yourself to be both a responsible driver and a responsible insured—unless, of course, you fail to pay your premiums or otherwise let your coverage lapse. After a time, you should see your rate improve as you establish a positive insurance history. Once you’ve had several years of continuous coverage, you probably won’t see any significant changes beyond this point unless you let your coverage lapse.

Letting your policy lapse or cancel directly impacts you from being eligible for the deep discounts we offer at Ackerman Insurance Services.

Why pay more for insurance than you have to?

Being aware of how a lapse affects you will help ensure you get the best protection at the best price. Contact our agents in Naples at  239-597-1096 and in Palm Beach Gardens at 561-609-1454  for more information or a free quote today!