Can my car insurance be backdated?

Purchasing or driving with a backdated auto policy constitutes insurance fraud. Insurance providers who sell them can face serious legal consequences.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

Full Bio →

Reviewed byDaniel Walker
Licensed Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/aiorg-live/d98a9f52-daniel-walker.png

UPDATED: Apr 20, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to remember...

  • No reputable auto insurance provider will agree to sell a backdated policy to a customer
  • If you have any gaps in your auto insurance policy, you can sign a statement of no loss and have your policy reinstated
  • If you’ve managed your auto insurance policy well in the past, there shouldn’t be any gaps in coverage
  • A no-loss form is the only exception to this rule and is only acceptable if the policy lapsed due to non-payment and you didn’t have any accidents during the coverage lapse

The idea behind car insurance is to protect drivers from losses stemming from car accidents. In the event of an accident, the insurance company will pay for the resultant costs on your behalf and you’ll only pay the excess.

But what if you didn’t have coverage? Is it possible to backdate your car insurance and have the auto insurance provider pay your claim anyway?

The answer is no. No auto insurance company of good standing will agree to backdate a client’s car insurance policy under any circumstances.

Simply put, backdating a policy is saying that your vehicle was insured before the date you actually purchased the coverage, which is in fact, lying.

On top of that, saying that a car insurance coverage was in effect long before it was even purchased could attract liability consequences for the insurance company.

Instead of trying to backdate your policy, you can get insurance in a good time to make sure that you are fully protected. If you are looking to purchase auto insurance coverage, compare quotes from multiple providers before you commit to any of them.

Comparison shopping will help you get a good auto insurance deal at an affordable cost. Begin your comparison shopping right here by entering your zip code into our free tool above.

Why Auto Insurance Companies Won’t Agree to Backdate Your Policy

days of a calendar_60115764-1600x1600

There are several instances where an individual might need a backdated auto insurance policy.

  • You might wish to take out insurance to cover the period you missed if your previous car insurance policy expired without your knowledge.
  • You bought a new car only to get into an accident soon after driving out of the dealership.

What do you do if you happen to find yourself in any of the above situations? Wouldn’t it be easier if you could purchase auto insurance coverage and backdate it to the date required for you to get compensation for these losses?

Maybe, but auto insurers providers won’t agree to such an arrangement.

Free Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Legal Issues

Car insurance is supposed to help drivers pay for the damages and bodily injuries resulting from car accidents. Your coverage will also pay for damages the accident may cause to other people’s property.

As a result, car insurance is a requirement in most US states. If you get pulled over by an officer, you will be required to produce proof of insurance. If the officer finds out that you have a coverage lapse, you will face penalties.

Backdating auto insurance policies would make it hard for state authorities to catch people driving without the required level of car insurance.

These individuals can quickly get a backdated policy when they need it. Backdating auto insurance policies would allow drivers to commit auto insurance fraud and get away with it. In states like California, backdating an auto insurance policy is committing insurance fraud.

Losses for the Insurance Company

AdobeStock_71564577-1600x1600

Insurance companies are organizations built for the sole purpose of making profits. Therefore, these companies will not agree to any arrangements where they do not stand to make any financial gain.

Auto insurance providers make money through premiums paid by their clients and use the same money to offer payouts for drivers who have been involved in car accidents.

As a result, auto insurance providers will always try to make their products appealing to drivers with perfect driving records.

Backdating a car insurance policy to a time when you were involved in an accident guarantees a payout from the company, meaning that the insurance provider doesn’t benefit from doing business with you. Now, why would an insurer agree to such?

Backdating car insurance is a risky business. No honest auto insurance provider can be involved in the acts of backdating a policy.

Even if a car insurance provider agreed to backdate a policy, policies would become extremely expensive since the company would have to include risk-based costs to account for any unknown infractions that might have occurred before the policy was issued.

What is the alternative?

adobestock_56116135-1600x1600

Auto insurance is based on risk and business is done by risk assessment. Backdating a policy increases the risk on the part of an insurance company.

It’s a policy made to show that insurance was available during a specific period when, in fact, it wasn’t. Backdating favors the insured person, helping them avoid the penalties of driving uninsured at the expense of the auto insurance provider.

However, if you have a coverage lapse in your policy, the auto insurance provider can reinstate your policy for the period that you went uncovered.

Maybe you forgot to pay the premium, or you simply couldn’t afford it at the moment, there is a way the provider can legitimately reinstate coverage.

You will be required to sign a statement of no loss stating that there were no losses or accidents during the period when your policy was not in force.

Usually, car insurance companies will only agree to reinstate your policy if the coverage lapse doesn’t exceed 30 days. You will also have to clear the payment arrears.

The no-loss form makes it clear that any claims involving the period between the policy cancellation and reinstatement dates will be denied. Always make sure that you have the right type of coverage.

Make timely payments to avoid cancellation. Compare quotes from several providers when shopping for auto insurance products to score the best possible deal. Enter your ZIP code below to get started.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption