Car insurance question

[Hondamaster5505]

I had State Farm for over a year now and recently fell behind on Payments so they cancelled me. I was paying 105 for one car.

I want to start fresh and also have two cars on my policy, and Liberty Mutual gave me a good quote at 127.00 for two cars.

My question is, will LM raise the price of the policy if they find out State Farm cancelled me?

[HondaPohl]

I'm pretty sure they will not. For all they know, you dropped state farm to go to LM. Your good.

[Lasher]

Depends on the insurance company.

There is a standard question for insurance company's rates, called "lapse in coverage" which is basically if you do not have insurance when you switched, they will charge more.

Reason (as with anything insurance related) is the risk. Some one who currently does not have insurace must have a reason. Either too high of a risk and were dropped be prior company or dropped due to non-payment.

So Liberty Mutual might have this condition or might not, depends on the insurance company.

One other thing to take note. You will get a quote from some insurance companies, and sign up. Then after a month or so, they hit you with an increase because they found more information about your driving history (ticket you tried to hide or credit rating etc). Happened to me in the past.

I used to write computer programs for auto insurance for a couple different companies. Amazing at how they soak you!

[HondaPohl]

Originally posted by Lasher
Depends on the insurance company.

There is a standard question for insurance company's rates, called "lapse in coverage" which is basically if you do not have insurance when you switched, they will charge more.

Reason (as with anything insurance related) is the risk. Some one who currently does not have insurace must have a reason. Either too high of a risk and were dropped be prior company or dropped due to non-payment.

So Liberty Mutual might have this condition or might not, depends on the insurance company.

One other thing to take note. You will get a quote from some insurance companies, and sign up. Then after a month or so, they hit you with an increase because they found more information about your driving history (ticket you tried to hide or credit rating etc). Happened to me in the past.

I used to write computer programs for auto insurance for a couple different companies. Amazing at how they soak you!

True. Didnt even think of that.

[Hondamaster5505]

Just made a payment and sticking with State Farm for now. lol