How Gaps in Coverage Affect Auto Insurance Rates

A lapse in coverage increases your risk and your rates. It may be harder to find suitable and affordable car insurance and may mean that you need to make some sacrifices in order to keep those insurance premiums at an affordable level. But it’s not a complete disaster and is far from the worst thing you can have on your record.

What is a Gap in Coverage?

A lapse or gap in coverage is a period in which you were not insured. You owned a car during this period but you didn’t meet the state minimum insurance requirements.

In some cases, a gap in coverage can be the result of negligence on your part. You may have allowed your insurance policy to lapse without purchasing a new one or it may have been canceled because you failed to meet your payment obligations.

A lapse in auto insurance coverage can also occur when you are deployed, sent to prison or because you simply didn’t drive during that period. 

If you fall into the first group, your insurer will notify the Department of Motor Vehicles (DMV), telling them that your car insurance policy has lapsed and you are no longer insured. This will expose you to fines and a host of other problems (see our guide on the penalties imposed on uninsured drivers).

As for members of the military, they can suspend their car insurance coverage when they are on active duty, thus avoiding any rate increases and other problems. The same applies to students studying abroad, although in their case, they will need to contact their DMV first.

What Happens Following a Car Insurance Lapse?

Many states require you to have continuous insurance, which means your auto insurance policy has not lapsed for any period of time. As soon as it lapses, your license and registration may be revoked, and you will need to pay a fee to have these reinstated. These fees, as they apply in each state, are listed below, but it’s worth noting that you may also be hit with additional court fees and fines if you are found to be driving without insurance:

  • Alabama: Insurance Lapse Fee = $200 (first offense); $400 (second offense)
  • Alaska: Insurance Lapse Fee = $100
  • Arizona: Insurance Lapse Fee = $50
  • Arkansas: Insurance Lapse Fee = $50
  • California: Insurance Lapse Fee = $14
  • Colorado: Insurance Lapse Fee = $40
  • Connecticut: Insurance Lapse Fee = $200
  • Delaware: Insurance Lapse Fee = $100 + $5 a day
  • D.C.: Insurance Lapse Fee = $150 + $7 a day
  • Florida: Insurance Lapse Fee = $150 (first offense); $250 (second offense); $500 (third offense)
  • Georgia: Insurance Lapse Fee = $25
  • Hawaii: Insurance Lapse Fee = $20+
  • Idaho: Insurance Lapse Fee = $85
  • Illinois: Insurance Lapse Fee = $100
  • Indiana: Insurance Lapse Fee = $150 (first offense); $225 (second offense); $300 (third offense)
  • Iowa: Insurance Lapse Fee = N/A
  • Kansas: Insurance Lapse Fee = $100 (first offense); $300 (second offense)
  • Kentucky: Insurance Lapse Fee = $40
  • Louisiana: Insurance Lapse Fee = $125 to $525 (depending on length of gap)
  • Maine: Insurance Lapse Fee = Up to $115
  • Maryland: Insurance Lapse Fee = $150 + $7 per day
  • Massachusetts: Insurance Lapse Fee = $500
  • Michigan: Insurance Lapse Fee = $75
  • Minnesota: Insurance Lapse Fee = $30
  • Mississippi: Insurance Lapse Fee = $30
  • Missouri: Insurance Lapse Fee = $20 (first offense); $200 (second offense); $400 (third offense)
  • Montana: Insurance Lapse Fee = N/A
  • Nebraska: Insurance Lapse Fee = $500
  • Nevada: Insurance Lapse Fee = $251 to $1,000 (depending on length of gap)
  • New Hampshire: Insurance Lapse Fee = N/A
  • New Jersey: Insurance Lapse Fee = $100
  • New Mexico: Insurance Lapse Fee = $30
  • New York: Insurance Lapse Fee = $8 to $12 per day
  • North Carolina: Insurance Lapse Fee = $50 (first offense); $100 (second offense); $150 (third offense)
  • North Dakota: Insurance Lapse Fee = N/A
  • Ohio: Insurance Lapse Fee = $160 (first offense); $360 (second offense); $660 (third offense)
  • Oklahoma: Insurance Lapse Fee = $400
  • Oregon: Insurance Lapse Fee = $75
  • Pennsylvania: Insurance Lapse Fee = $88
  • Rhode Island: Insurance Lapse Fee = $30 to $50
  • South Carolina: Insurance Lapse Fee = $550 + $5 per day
  • South Dakota: Insurance Lapse Fee = $78 to $228
  • Tennessee: Insurance Lapse Fee = $115
  • Texas: Insurance Lapse Fee = $100
  • Utah: Insurance Lapse Fee = $100
  • Vermont: Insurance Lapse Fee = $71
  • Virginia: Insurance Lapse Fee = $145
  • Washington: Insurance Lapse Fee = $75
  • West Virginia: Insurance Lapse Fee = $100
  • Wisconsin: Insurance Lapse Fee = $60
  • Wyoming: Insurance Lapse Fee = $50

Will My Car Insurance Rates Increase Following a Gap in Coverage?

In addition to the fines mentioned above, you can expect your auto insurance quotes to be a little higher than before, although this all depends on how long the gap in coverage was.

If it was less than 4 weeks, the rate increase may amount to a few extra dollars a month. If it was longer than 4 weeks, you could find yourself paying 20% to 50% more, depending on your chosen car insurance company. 

The exact rate of increase will depend on the state, high-risk status, driving record, car insurance discounts, and age of the driver. Insurance is all about measuring risk and probable claims, and an insurance company will look at everything from marital status to DUI convictions when measuring your risk and underwriting your new policy.

Bottom Line: Getting Cheap Car Insurance Quotes After a Lapse

In our research, we found that Progressive, Esurance, and State Farm offered lower rates than GEICO, even though GEICO typically tops the charts when it comes to insurance costs. You should also get much lower auto insurance rates with providers like USAA, providing you qualify.

To save even more, maintain a high credit score, aim for those good driver discounts, and try to secure bundling discounts, which are provided when you combine multiple different insurance products, such as homeowners insurance and car insurance.

The car you drive is also key. A new car will generally lead to much higher rates than a car that is a few years old, as it will be more expensive to repair and replace.

However, a car that is a few decades old will cost more to insurance than one that is a few years old, as it may lack the safety features and anti-theft features needed to keep rates low.

 

How Gaps in Coverage Affect Auto Insurance Rates is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

Plymouth Rock Assurance Review

Founded in 1982, Plymouth Rock Assurance provides a selection of property insurance and bodily injury insurance products to customers across the states of New York, New Jersey, Pennsylvania, Massachusetts, Connecticut, New Hampshire.

In this Plymouth Rock Assurance review, we’ll compare this provider to other regional and national insurance carriers, helping you find the best insurance policy for your needs.

Plymouth Rock Car Insurance Coverage

Plymouth Rock Assurance offers a host of car insurance coverage options, allowing you to meet the minimum requirements in your state and go above and beyond those requirements when needed,

Bodily Injury Coverage: Limited to a fixed amount of money per person and per accident, bodily injury insurance covers the harm done to other people in an accident. It is designed to help them with their medical bills and other payments resulting from an accident.

Property Damage Coverage: Also fixed to a specific sum, property damage insurance is designed to cover the other driver’s vehicle in an accident, as well as other property that you damage.

Collision Coverage: A type of insurance that covers you for damages done to your own car. With collision insurance, you will be covered regardless of who caused the accident and you’ll also get cover if the accident involves an obstacle (tree, guardrail, wall, fence) as opposed to another vehicle. You will not, however, be covered if you hit a deer. One of the quirks of this coverage option is that you’re only covered for animal collisions if you swerve and hit a wall/tree.

Comprehensive Coverage: With comprehensive coverage, you’re generally covered for the things that collision insurance can’t reach. It covers deer collisions and other accidents involving animal strikes and it also covers damage caused by weather and vandalism.

Personal Injury Protection (PIP): This coverage option works like bodily injury coverage, only instead of protecting the other driver and their passengers, it protects you, covering you for lost wages and medical bills.

Medical Payments: A type of insurance specifically designed to cover your medical bills. Unlike PIP, medical payments coverage will not give you money lost as a result of missed work.

Underinsured/Uninsured Motorist Coverage: When the other driver’s insurance cannot cover your claims, either because they don’t have enough or they don’t have any, uninsured/underinsured motorist insurance will step in.

Plymouth Rock Assurance Auto Insurance Features

Plymouth Rock Assurance has three different levels of auto insurance: Plus, Preferred, and Premier.  There are different coverage options available at each of these levels and you can upgrade if you feel that those options will serve you well.

Some of the features offered at these different levels, along with the additional coverage offered to all policyholders, include:

  • Door to Door Valet Claim Service: Plymouth Rock auto insurance customers can arrange for their cars to be picked up from their homes and taken to a nearby repair shop. Once it has been fixed, it will be returned at a time that is convenient to the policyholder.
  • Guaranteed Repairs: If performed at a listed repair shop, all repairs will be guaranteed by Plymouth Rock.
  • Comprehensive Claim Forgiveness: Plymouth Rock promises that your insurance premiums will not increase just because you make a claim about a stolen or weather-damaged vehicle.
  • Get Home Safe: If, for whatever reason, you don’t feel safe to drive home, Plymouth Rock will cover your taxi ride. This can happen one time per year as part of most Plymouth Rock car insurance policies.
  • Glass Coverage: Plymouth Rock offers several coverage options and policy features related to windshield repair and glass repair. This includes a $100 glass deductible and a waived glass deductible repair.
  • New Car Replacement: If you have a new car that gets totaled within a specific timeframe, Plymouth Rock will replace it completely.
  • Crashbusters: Plymouth Rock will send a Crashbusters team to your location at your request. They will assess the damage done to your vehicle and can help you to file a claim.
  • Pet Injury: In the event that your pet gets injured during a car accident, some Plymouth Rock policyholders can claim a small portion of the vet fees. After all, your dog or cat needs cover too!
  • Roadside Assistance: With the Plymouth Rock roadside assistance program, you’ll be covered for some of the services charged on broken down vehicles at the roadside, including towing, tire changes, fuel delivery, and more. 
  • Key Replacement: Lost your key? With the right cover from Plymouth Rock, you can get a replacement set.

Plymouth Rock Car Insurance Discounts

Plymouth Rock discounts differ from state to state and from user to user. The biggest of these are multi-policy discounts, which are offered when you purchase multiple policies, and prepay discounts, which are offered when you pay your insurance premiums upfront. 

Other available discounts include:

  • Paperless Filing: Go paperless and do your bit for the environment while helping to reduce waste and saving a few cents in the process.
  • Membership Organization Discounts: Make big savings when you are a member of specific organizations.
  • Senior Discount: Drivers above a certain age can apply.
  • Good Student Discount: Offered to young drivers who obtain at least a B average.
  • Safety Features and Anti-Theft Devices: If your car contains key features like trackers, alarms, airbags, seatbelts, and anti-lock brakes, these discounts will be available to you.
  • Driver Training: Complete driver training courses to prove your skills, show your commitment, and make some savings.
  • Low Mileage: Drive less and you could pay less.

Other Plymouth Rock Insurance Products

In addition to car insurance, the Plymouth Rock Assurance Corporation offers a wealth of insurance products. These are also confined to a very small part of the United States and include:

Home Insurance

Plymouth Rock offers comprehensive insurance quotes for all homeowners. These policies will cover you for the breakdown of key appliances, loss of personal items, identity theft protection, and even protection against hacks and cybercrime.

You can apply for Plymouth Rock home insurance directly if you live in New Jersey, New York, New Hampshire, Pennsylvania, and Connecticut.

Renters Insurance

Renters insurance will cover you for personal losses in the home, as well as providing liability protection for anyone who gets injured in your home. Plymouth Rock renters insurance is available in the same states as Plymouth Rock home insurance.

Life Insurance

Plymouth Rock life insurance policies are only available in the state of New Jersey. Both term life insurance and variable life insurance policies are available, of which term life is arguably the better choice.

Policyholders can opt for a term of between 10 and 30 years, with the insurance premiums and payouts dependent on your age, health, medical history, and other key factors.

Umbrella Insurance

An umbrella insurance policy essentially increases your liability limits, going the extra mile to protect you. It is a supplemental insurance policy, designed to be added onto car insurance or homeowners insurance and to protect you and your family in the event that a claim is made against you.

Plymouth Rock Customer Satisfaction and Claims Satisfaction

Plymouth Rock has good ratings from customers and experts. It has an A- rating from AM Best, which isn’t the highest possible rating but is a great effort from a relatively small company (when compared to giants like GEICO and State Farm).

The insurance claims process is quick and easy, and while there are a number of bad reviews and complaints out there, Plymouth Rock seems committed to remedying these as quickly and completely as possible.

Furthermore, if you have a bad experience with Plymouth Rock, make your discontent clear and they will make a donation to a charity of your choice. This proves that Plymouth Rock is committed to keeping customers happy and willing to do whatever it takes.

Bottom Line: Car Insurance in New England

Plymouth Rock is a very highly-rated insurance company offering a selection of products directly and through insurance agents. It has accident forgiveness and claims forgiveness; offers a multitude of ways to pay your premiums, and the support team is available around the clock. 

If you reside in one of the states where Plymouth Rock operates, visit PlymouthRock.com, get a quote, and start comparing. If not, don’t worry, as there are many other great insurance company reviews to check out, including The General, Progressive, and Esurance.

Plymouth Rock Assurance Review is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

How COVID-19 is Affecting Auto Loans

COVID-19 is having a massive impact on the global economy and very few industries have been untouched by it. If your business relies on employees working in a physical space and profits only when people are willing to shop and spend, there’s no escaping it. 

It’s no surprise, therefore, that the auto industry has been so negatively affected. In a recent guide, we looked at the many auto loan relief options that manufacturers offering in light of the coronavirus. In this guide, we’ll highlight the ways this industry has been stung by the pandemic and look at what it means for the future of the US automobile and car financing sectors.

How is the Coronavirus Affecting Car Sales?

The automobile manufacturing industry experienced a minor surge at the beginning of 2020 but COVID-19 began to impact sales heavily in March. Many companies, Fiat Chrysler and General Motors included, began the year with strong momentum behind them, but March hit them hard and negated all the gains made during the first two months.

Both of these companies recorded losses for the first quarter of 2020, with Fiat Chrysler losing 10% in total.

Toyota, one of America’s biggest manufacturers, also recorded massive losses for March, with daily sales dropping by nearly a third during this month.

All of this is to be expected. The US has yet to announce the sort of national lockdowns we have seen in countries like the United Kingdom, Italy, Spain, and Greece, but many citizens are in self-isolation, countless businesses have shut their doors, and there are fewer cars on the road as a result.

Combine this with the fact that people are losing their jobs and worrying about their futures, and it’s easy to see why car sales have been affected so severely. 

What are Manufacturers Doing About It?

Automobile manufacturers have moved quickly to stem the rising tide of financial devastation caused by COVID-19. Fiat Chrysler, for instance, is offering improved auto loan conditions to convince consumers to make sizeable purchases and keep the wheels turning. It has also made it easier to purchase a car for those in self-isolation or lockdown.

You can now buy a Fiat Chrysler online, with options for trade-ins, auto loans, and pretty much everything else you would get when buying in person.

They’re making it easier for you to buy because they need you to make that commitment. At the same time, the production of many new vehicles has been halted.

While some plants and showrooms are still open in the United States, Europe has experienced an almost continent-wide shutdown, leading to a decreased demand. 

Manufacturers are also anticipating that things will get worse, as many experts predict that the USA will experience a spread similar to that of Spain and Italy.

How Has COVID-19 Hurt the Automobile Industry?

We have already touched upon some of the ways that COVID-19 has impacted the automobile industry, but the problem goes far beyond people not being able to make it to their local showrooms. Furthermore, if events in Europe are anything to go by, the problems will only get worse and it could be several years before the automobile sector recovers.

Here are a few reasons the industry has been hit hard:

Uncertainty

There is a genuine fear that the COVID-19 pandemic will remain for all of 2020 and even beyond that. It seems unlikely that it will last for that long, but if the country doesn’t go into lockdown and a vaccine isn’t produced, it’s possible. 

With this in mind, many consumers are putting off buying new cars out of fear that they simply won’t need them. New cars depreciate rapidly and can lose 20% in the first year. What’s the point of spending $30,000 on a new car if it will be worth $24,000 by the time you actually get behind the wheel?

Struggling Stock Markets

The stock market doesn’t just impact big companies and investors. It also affects average American families who have their money tied into savings accounts, stocks, and pensions. Savers have lost a lot of money and are worried that they’ll lose even more in the near future, making buying a $30,000+ vehicle incredibly reckless. 

Price of Gas

One of the few things that the automobile industry has on its side is the price of fuel, which has plummeted in the past few weeks. The problem is, no one cares about the price of fuel when they’re stuck inside the house worrying about their health and their jobs.

Closed Plants

Automotive plants can’t simply shut down for a few weeks and then start up again when everything has cleared up. Many plants were already struggling to keep things together and once production stops and their profits disappear, they may close down entirely, taking hundreds, if not thousands of jobs with them. 

Bottom Line: Car Sales After COVID-19

It’s highly likely that the hard times will continue for the manufacturing industry. As the coronavirus continues to spread across the country, manufacturing plants will struggle to retain employees, showrooms will shut, and fewer Americans will be willing to pay the $30,000+ required for a new vehicle.

Whether this impacts the future price and availability of automobiles remains to be seen, but it’s highly likely that we’ll see some massive changes in this industry. America’s best-loved manufacturers will lose millions and could be sent to the brink of financial destruction, while many salespersons and mechanics will likely lose their jobs as demand drops and garages/showrooms close down. 

 

How COVID-19 is Affecting Auto Loans is a post from Pocket Your Dollars.

Source: pocketyourdollars.com