Overlap Car Insurance

Changing your auto insurance policy before it expires can cause some confusion and anxiety, especially if there is an overlap. For some people making a change, there can be an overlap car insurance period. 

An overlap in insurance is simply when an automobile is covered both by the current provider and the insurer that the driver is switching to at the same exact time. It is usually for a short period, often a few days or even just one day. Overlap almost always happens when changing auto insurance companies.  

There’s always the fear of not be appropriately covered or making a mistake that can have significant consequences if you’re ever in an accident. This is why most people, out of fear of not being covered, get a new policy before canceling their old one. Some people end up waiting days or even weeks before canceling their old policy, which can be a waste of money.  

Steps to Take When Switching Insurers

There are several things you need to consider before switching to another auto insurance company. This includes determining the best date to terminate your policy not to have significant lapses in coverage. Also, it would help if you check whether or not your insurer charges a cancellation fee. It is always an important step to take. The amount of this penalty is essential because if it is too high, it might make more financial sense to wait to tell your policy expires before getting a new one. If there is no penalty, it might make sense to switch right away if you can save a lot. 

If you don’t know if there is a cancellation fee, just call up a customer service rep and ask, or send a quick email. Don’t feel nervous about canceling your policy. Carriers have reps that handle dozens of these calls on a daily basis.     

What Results in  Overlap Car Insurance?

For some consumers who wait to cancel their policy, there might be a period where you have an overlap car insurance policy for a variety of reasons. As stated before, this just means that your automobile is covered by two insurers simultaneously, thus resulting in overlapping coverage. In some cases, the overlap can occur for up to a month or even longer. 

Of course, it doesn’t make sense to have your vehicle insured twice, so try to avoid this if you can. It’s a waste of money and can cause unneeded stress.  Get cheaper rates in four minutes with a quick quote from good to go insurance online. 

Your Policy Won’t Become Active Until a Payment is Made 

When you apply for auto insurance quotes, you need to keep in mind that the rates are not in force until you get an effective date for your coverage to commence. It can only be done after you have successfully made a payment. If you don’t make a payment, then you won’t be covered. It’s as simple as that. 

With the internet, purchasing an auto insurance policy is fast and easy. In just a few minutes time, many people buy a new policy without even thinking about canceling their old one. This oversight can result in an overlap car insurance policy and insuring your car twice. 

This means that you are paying two insurers for covering the same car at the same time. If it’s just a couple of days, then it might make sense, but not for too much longer.

Make Sure You Read all the Fine Pring on Your Policy 

Some people mistakenly believe that if their vehicle is insured twice that they will have double the coverage. This is just not true. For example, if you crash your car and need to file a claim, you can only do so with one carrier. If you file dual claims for the same incident, you are breaking the law and might get charged with insurance fraud. 

When you buy a new auto insurance plan, make sure you read all the fine print and determine what the rules are about double coverage. You may get your auto insurance canceled if you violate them. 

It is also important to note that some people buy a new car insurance policy and do not pay their previous insurer’s leftover premium bill. Doing this can result in damaging your credit and higher auto insurance rates going forward. Here are some common scenarios where double insurance coverage can occur.

You Purchase New Car Insurance and Wait for Your Old Policy to Expire

The most frequent reason people end up with overlap car insurance is that they decide to buy a new policy and then wait to cancel their existing one. Some people still have months remaining that they’ve already paid for but don’t make an effort to call their old insurer and cancel the policy. 

Some people just feel guilty calling and canceling. They end up procrastinating and wasting money. This should never be the case. Large automobile insurance providers deal with hundreds and even thousands of cancellations daily. Canceling your old insurance coverage should be a top priority if your new policy is in force. Not only will you get a refund, but you will stay within the law. Another concern is some policies might automatically renew, or your credit cards might be automatically charged if you have set-up a recurring auto-renew policy. Put in a policy cancellation request with your old provider as soon as your new coverage is secured.

If you do set-up automatic payments, make sure you read all the fine print, so if you decide to cancel, your policy will not automatically renew and charge your card. Not only will this waste money but a lot of time to get the charges reversed.  

Dealer Auto Insurance Coverage

Some automobile dealerships will give you car insurance for a set period when purchasing a new or used vehicle. It is an incentive to close more sales and avoid extra roadblocks to the purchase. 

If a dealer covers your newly purchased vehicle, check when the coverage will expire and plan on getting insured a day or two beforehand. You should also note that the dealership’s insurer will want to keep you as a customer, but often you can get lower rates. 

Make sure you are not set-up for automatic re-billing from the dealers’ insurance company. If you fail to do so, you might end up getting charged for a more expensive policy that you don’t want long-term.   

Your Vehicle Insurance is Combined With a Spouse

When a couple gets married, they will most likely have two different insurance policies. It makes sense to save money by combining coverage with one insurer. They can do this by simply comparing rates for multi-vehicles at leading sites like goodtogoinsurance.

Once you find the right plan at the best price, you can then buy the policy and, of course, cancel your old one. Get started now with a combined married auto insurance policy. Enter your zip code to compare rates from regional and nationwide auto insurers.  

What Can Happen with Overlap Car Insurance?

In some U.S. states, overlapping auto insurance is legal but can cause issues that can be a real headache. One of the worst-case situations with stacking insurance policies is having your claim denied.

You might get into a wreck with a car that has double insurance and file a claim. There is a high probability both companies will find out about the dual coverage. Since auto providers make money by not paying claims, it is in their best interest to find a way to reject a claim made. They will point to the other insurer’s coverage and not take financial responsibility for paying it. This is why it’s so important to cancel your existing car insurance as soon as you get a new and effective policy.

Another frustrating thing that can happen when you file a claim when two insurers cover your car is lengthy delays. A claim process usually takes a long time and comes with a lot of paperwork and often unforeseen delays. 

When you have double auto insurance, this process can slow down to a crawl. It can take months to get your claim payout, or you might not get paid at all. 

Now that you are familiar with overlap car insurance, how about checking rates online? Get your free no-obligation quote in about 5 minutes at good to go auto insurance online. You can save hundreds with direct pricing and build a plan that best serves your needs. Get started today and save more with a direct auto insurance policy.