Auto insurance companies are tricky folks. Rest assured, they will use every opportunity they can to charge you a bit more for your auto insurance. One way they do this is through lapses in coverage. If you allow your coverage to lapse, even briefly, you can be disqualified from receiving discounts, which can lower your premium significantly. From their perspective, a policyholder who allows their coverage to lapse isn't really being a responsible policyholder, and thus pose a slightly higher risk to the company. At least that is how they justify it. Plus, policyholders who let their coverage lapse are no longer paying premiums...auto insurance companies are in the business of collecting premiums so they don't like it when people stop.
So what is the moral of the story here? DON'T LET YOUR POLICY LAPSE. Make sure you pay your auto insurance bills on time. If you have searched around for auto insurance quotes from other carriers and decided that you can save money by taking your business elsewhere, be sure that you DO NOT quit your current policy until your new auto insurance coverage takes effect.
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