Jennifer asked in Business & FinanceInsurance · 7 years ago

Will my insurance decrease after having liability for six months?

I owned a car, then decided to get rid of it for financial and other reasons. I did not own a car for a little over a year, and so I did not carry car insurance. I recently got a car and so I've taken out an insurance policy on it again, but everyone I got a quote from (State Farm, GEICO, Allstate, Progressive, Esurance, Liberty... and some more) all were charging me more because it had been over six months since I carried liability insurance. I've already accepted that this is apparently how it is.. but my insurance is significantly higher than it was compared to my previous policy. Enough time has gone by that I didn't even have any speeding tickets within the reviewed time frame, and I haven't had any at fault accidents as of yet.

I had State Farm previously and was paying $75 a month in a brand new car.. I'm now driving a 2008 car, just a Subaru Forster, and I'm paying $140... I was even paying $88 with a Mini Cooper S, so I don't think the higher rate has anything to do with the car. On the documents I got with my new policy (not with State Farm) they said one of the determining factors of my increased rate was because I hadn't carried liability in the last six months... will my insurance go down after I've kept liability insurance with them for six months?

3 Answers

  • car253
    Lv 7
    7 years ago
    Favorite Answer

    Bottom line: It depends on what state you live in. Some states penalize you for not having insurance and other's don't, like California. Even then it depends on the company. State Farm does not penalize you if you live in California.

    Did you lose any discounts you had before? Multi-car, multi-line, loyalty, good driver ect.? Call your old State Farm agent and ask about all the discounts you had before and see if you still qualify for them. You might want to post your state.

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  • cinda
    Lv 4
    3 years ago

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  • 7 years ago

    all you can do is comparison shop. and go with who ever has the lowest rate. the important thing is that the coverage is the same. instead of going with the big companies for a quote. call an insurance broker, and have them find you a small insurance company.

    that's what i did when i first started. now im with a big company and paying the lowest rate i've had in years.

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