I have been without insurance for nearly a month now. I have been unemployed for 5 months, but I will start a new job next week! Yay! Since I will start working soon, I will be able to afford to pay again.
My car will also be paid off next month. I plan to go with a new company. (I do not have loyalty to the "current" company.) I used to have a well-known national company for years. When I first lapsed six months ago, my long-time company DOUBLED my monthly premium. I went for a low-budget, local company.
Will the new company force me to pay for the time I did not have insurance?
Or will I face a penalty?
Will they charge me a higher rate?
**Believe me, I know that I am taking a terrible risk driving around without insurance. I know that it is illegal…but I have been unemployed for 5 months, and have used the little money I had to pay rent, utilities, my car, groceries for me and 3 kids. I just had no other choice…
I just want to be prepared for fees, higher rates, penalties, etc.
Can you please give me some advice and suggestions on how to get myself back on track?
Thanks.
No, the new company won’t force you to pay for time you were uninsured. Yes, the premium is higher, when you have a lapse 30 days or more. No, it’s not a fixed amount – it’s usually a percentage factor, which can be applied a bunch of different ways.
AND, your LENDER will force you to pay for insurance for the time you’re without coverage – at a much higher rate. So if you’re driving uninsured now, don’t expect your car to be paid off next month – it could take 3-5 months more, with the forced placement charges.
My best advice, is STAY OUT OF DEBT.