How Coverage Gaps Affect Your Premium
Car insurance rewards continuous, accident-free driving with increasing discounts. When you cancel or let your policy lapse — due to selling your car, living abroad, or other reasons — insurers treat the gap as a risk signal and partially or fully reset your earned discounts. This calculator shows the estimated impact so you can plan ahead.
Lapse Period Impact Guide (Reference)
Under 3 months: no impact. 3–6 months: ~10 percentage point discount loss. 6–12 months: ~20 pp loss. 12–24 months: ~40 pp loss. 24+ months: full discount reset. Actual rules vary by insurer.
Tips to Minimize the Hit
If a long gap is unavoidable, compare multiple insurers when re-enrolling — some weigh gaps differently. A short lapse under 3 months generally has no effect, so timing your re-enrollment can save money.
FAQ
Generally no — a lapse under 3 months is treated as continuous coverage. Confirm with your specific insurer before re-enrolling.
Your driving history is effectively reset, and new-driver rates apply. A 30% discount holder could see their premium rise by about 43%.
Yes — liability (minimum) coverage is legally required in virtually all US states while you own a registered vehicle, regardless of whether you drive it.