In most states, you are required to carry auto insurance in order to legally drive a car. Prior auto insurance can serve as proof of financial responsibility when applying for a new auto insurance policy or when renewing an existing policy.
Lower Insurance Premiums
Having a history of continuous auto insurance coverage can lead to lower insurance premiums. Insurance companies view drivers with longer periods of insurance as less risky, as they have demonstrated a commitment to maintaining financial responsibility.
Discounts and Benefits
Some insurance companies offer discounts or benefits to drivers with prior auto insurance, such as discounts for accident-free driving or loyalty discounts.
Gap Coverage
If your car is totaled or stolen and you owe more on your loan or lease than the car's actual cash value (ACV), prior auto insurance can help cover the difference through gap coverage.
Rental Car Coverage
Prior auto insurance may include rental car coverage, which can help pay for the cost of a rental car if your car is damaged or stolen.
Emergency Roadside Assistance
Prior auto insurance may include emergency roadside assistance, which can provide services such as towing, flat tire changes, and jumpstarts.
Personal Injury Protection
Prior auto insurance may include personal injury protection (PIP), which can help pay for medical expenses and lost wages if you are injured in an accident.
Overall, prior auto insurance can provide peace of mind, protect you financially, and offer various discounts and benefits that can make it a valuable asset when it comes to auto insurance.
