Insurance companies do not usually offer retroactive coverage because the loss has already occurred. As with most insurance policies, a backdated liability policy will still contain a coverage limit. This protects the insurer from unlimited losses in the event that a claim turns out to be more expensive than estimated. Drivers who inform the officer that they are uninsured will be cited not only for the primary violation for which they were stopped, but also for not having insurance.
Each insurance company has its own rules for deciding whether to drop your coverage and for how long. According to the insurance company, you are technically a year older, so your rates will be adjusted accordingly; however, if you backdate the policy by three months to begin May 1, your premiums will be set at the lower rate. It is also possible for someone who was driving without insurance to have an accident, buy a backdated policy and then file a claim for their damages on the policy. Enter your postcode above to find car insurance rates from the best companies in your area today and get coverage now.
If you call and add the car to your insurance during the automatic coverage period, you can backdate the addition. As soon as the policy takes effect and premiums are paid, the insurer agrees to pay any covered claims you file. Drivers who report to the officer that they are uninsured will be cited not only for the primary violation for which they were stopped, but also for not having the car insurance required by state law. In most states, including California Superior Court, you are required to appear in court when cited for driving without insurance.
Insurers licensed by the state to sell products must refer to what is and is not allowed by the insurance department before backing anything up. The insurer will use your actual age or the closest approximate age based on the nearest birthday. Before long, there would be no such thing as a car insurance industry and we would all be paying out of pocket for damages and injuries. It is legal to delay a life insurance policy for up to 6 months to help you get the lowest rate allowed for that age.