Have you ever had car insurance, missed a payment, and had it canceled? If you went without insurance for a while before getting it again, it's called spotty prior insurance. This on-and-off behavior can increase your insurance rates as insurance companies see you as a risky customer who may not pay them on time.
Staying insured is super important. It not only keeps you financially protected in the event of an accident, it reduces how much you pay for your car insurance over time. OCHO helps by letting you make smaller payments every two weeks, matching your paycheck schedule. The idea is always to stay insured and not miss any payments. If you must miss one because of a job loss or a family emergency, ensure you reinstate your insurance, which means your policy is active again.
Check your coverage details for info on your policy and reinstatement. It can vary depending on your policy and the insurance company. After canceling your policy, the insurance company gives you about 30 days to reinstate it. You might have to pay any outstanding payments. Reinstating is good because it's like you never had your insurance canceled, and you stay insured. But be aware it can come with a cost. Some companies charge reinstatement fees. The best thing is to avoid those fees by keeping up with your payments and staying insured.
If you would like even more information about gaps in insurance, check out our in-depth blog on the topic.