How to Avoid a Lapse in Auto Insurance Coverage While Deployed

When you’re deployed, there is a long list of items you must take care of before leaving. How you handle your auto insurance now can affect rates when you return home. Although it may be tempting to cancel coverage on a car you aren’t using, it may not be the best option.

Maintaining auto insurance coverage during deployment helps avoid a costly lapse in coverage. Even some of the best auto insurance companies for veterans can raise rates significantly if you don’t have a history of continuous coverage since they assume you’ve been driving without insurance.

Knowing how to avoid a lapse in auto insurance coverage while deployed will save you money and headaches when you get home. In addition, there are ways to save money on your insurance, such as reducing coverage and adding discounts.

Keep reading to learn how to keep auto insurance coverage during deployment and save money.

Why should you avoid an insurance lapse while deployed?

You may consider canceling your auto insurance if you don’t take your vehicle when you deploy. However, that may not be the best option. Unfortunately, you must pay auto insurance while deployed to prevent a lapse in coverage.

Since insurance companies charge higher rates if you have a lapse in coverage, keeping auto insurance coverage during deployment helps you avoid significant increases.

The good news is that avoiding auto insurance coverage lapses during deployment is easy, and you have several options.

How can you keep auto insurance while deployed?

Once you decide to keep insurance on your vehicle, there are ways to keep your policy active and your car safe.

You can pay for your policy in advance. In addition to keeping your policy up to date, many insurers offer a discount for prepaying, so ensuring auto insurance coverage during deployment can save you money.

Set up automatic payments if you don’t want to pay your full policy in advance. Your policy will remain active, and you may still get a discount for auto payments.

Also, consider pausing your insurance if your insurer offers the service. However, any damage your vehicle sustains won’t be covered. You’ll have to pay for repairs yourself.

How do you reinstate auto insurance after a deployment?

Reinstating auto insurance is relatively simple. Apply for new coverage, and ensure coverage begins before you’ll be driving, so it may be easier to get quotes and have your insurance in place while still overseas.

Keep in mind that getting new coverage is easy, but your rates may be significantly higher since you’ll have a lapse in coverage.

When your auto insurance policy lapses while you’re deployed, you’ll face a “patriot penalty,” which is an upcharge in auto insurance rates after your policy lapses.

This is why avoiding a break in auto insurance coverage while deployed is crucial. It may be cheaper to pay for reduced coverage while deployed than higher premiums when you return.

How much is auto insurance after a lapse in coverage?

Every auto insurance company calculates rates differently, but most penalize drivers with a coverage lapse. Insurers assume you drive without insurance during the lapse and charge higher rates.

Although each insurer offers different rates, avoiding a gap in auto insurance coverage while overseas can make sure you can find cheap auto insurance when you get home.

Although some insurers make exceptions for military members, it’s not guaranteed. In addition, some states, like Louisiana, don’t allow insurers to charge higher rates after a deployment.

How do you insure a vehicle while deployed?

Maintaining auto insurance while deployed is essential to avoid penalties and out-of-pocket expenses. Fortunately, you have several auto insurance options while deployed.

First, you can reduce your coverage. If your car isn’t driven, you can decrease coverage to comprehensive only. Comprehensive coverage pays for damages unrelated to an accident, such as fire, theft, vandalism, falling debris, and acts of nature, like floods and hail.

You won’t need liability or collision coverage if no one drives the vehicle. When you return home, you can increase your coverage to meet state requirements.

Next, ask your insurer if they will pause your coverage while you’re deployed. However, few insurers offer this service, and any vehicle damage won’t be covered. For example, insurance won’t pay for damages if a tree limb falls on your car while your policy is paused.

Finally, consider keeping your current auto insurance. If someone drives your vehicle while you’re gone, you need at least the minimum required coverage. While this option is the most expensive, you won’t have to worry about vehicle damage since your insurance is in place.

How can you save money on auto insurance while deployed?

Paying for auto insurance on a car you won’t be driving isn’t fun, but it is necessary. Fortunately, there are several ways to save on auto insurance while deployed.

First, take advantage of auto insurance discounts. Most companies offer numerous ways to save, and many insurers offer military discounts on auto insurance in addition to standard discounts. Combine discounts such as good driver, continuous coverage, and vehicle safety feature savings with military discounts for the most savings.

There are a few companies that provide discounts to military veterans that park their vehicles while deployed. Here’s a list of the top companies that provide veteran deployment discounts.

• Allstate
• Esurance
• Geico
• Liberty Mutual
• Progressive
• USAA

While several companies offer military discounts, some offer specialized discounts for specific situations. For example, Geico also offers an emergency deployment discount for military personnel deployed to certain imminent danger zones.

Next, reduce coverage to save money on auto insurance. Consider comprehensive-only coverage if your car will be garaged while you’re away. In addition, raising deductibles and removing add-on coverages, like roadside assistance, lowers rates.

Finally, see if your insurer allows you to pause your policy while deployed. While few insurers offer this feature, pausing coverage may allow you to avoid a costly lapse in auto insurance. You may have to provide written information about your deployment to qualify.

Avoid an Insurance Lapse While Deployed: What’s the bottom line?

It’s important to keep your auto insurance active even when being deployed. Not only will it protect your vehicle, but it also allows you to avoid a lapse in coverage.

A lapse in auto insurance often leads to much higher rates when you return and are ready to drive again.

Instead of canceling your auto insurance, consider reducing coverage or asking your insurer about pausing your policy. You may also qualify for military auto insurance discounts to lower your rates.

Unfortunately, the “patriot penalty” is very common among auto insurance companies. As more people become aware of this, government officials are taking a stand against insurance providers.

However, it may take a while for these responses to take effect. Therefore, it may be in your best interest to cancel a policy that’s too expensive and go with a cheaper company.