Can Car Insurance Be Backdated?

Car Insurance Could Be Backdated in San Diego, CA

Driving a car requires you to have an active auto insurance policy. If you or someone else is operating your vehicle and causes an accident resulting in serious injuries, death to others, or damage to property (e.g. house, parking structure, fence, street sign, landscaping) this coverage provides payment for losses involved at the time the policy is in force.

Allowing your National City auto insurance coverage to lapse for any length of time is a dangerous game, not to mention illegal in California. Some people think they can fill a gap in auto insurance by getting a backdated policy. However, if a moving traffic violation or accident occurred during a gap in coverage, obtaining a backdated policy would not resolve any issues if there are excess costs, damages, injury payments, or lost wages. Backdating an auto insurance policy would involve changing the original date the policy started to a date that conceals gaps in coverage. Any recognized insurance agency will not oblige such a request, as backdating auto insurance is viewed as a deceitful practice.

Make sure you don’t end up with gaps in your coverage by getting online auto insurance quotes. National City drivers can purchase affordable policies that keep them protected.

According to the Information Insurance Institute, property/casualty fraud amounts to approximately $34 billion a year. This includes misleading representation of facts on insurance applications. The concept of insurance is to provide motorists a legal and safe way to stay on the road and afford damages. If backdated auto insurance policies were allowed, this would give uninsured drivers a way to commit fraud. The effects of insurance fraud cost consumers millions of dollars every year, and insurance companies are charging consumers more money to make up for the enormous expenditures.

Gap insurance provides a solution. When you purchase a new vehicle, depreciation begins the second you drive off the lot. Within a year many vehicles lose 20 percent of their value. Depreciated value is covered by standard auto policies. At the beginning of ownership, if you put down a minimal amount in addition to financing the loan amount, it might surpass the market value. Gap insurance covers what you owe and what the car is worth.

A view at purchasing gap insurance for your new vehicle:

  • 20 percent down payment or less
  • 60 months or longer financing
  • Vehicle leasing
  • Vehicle purchased depreciating faster than average
  • Negative equity from old car loan transferred to new

Knowing the elements of your auto insurance policy is one of the best ways to overcome obstacles you encounter with a lapse in coverage. It is your choice to add optional coverage that can offer the added protection and safety you need in the event of a loss.

Gaps can occur in many different types of insurance, so make sure you’re adequately covered. At American Tri-Star, we offer reliable car, commercial, RV, motorcycle, and property insurance in National City. Give us a call today at 619-474-3900, and one of our friendly agents would be happy to provide a free quote.