Retroactive Car Insurance Policies The earlier date of car insurance policies is illegal and something that no reputable insurance company or agent would do. Each insurance company has its own rules for determining whether and for how long they will roll back their coverage. Even if your health insurance company allows the practice, it doesn't offer any specific benefits that are valuable enough to make a big difference in your coverage or premiums. If you are cited for driving with a suspended license and the DMV pushes back the date of reinstatement of your license to clear the violation, it would be the same as retroactive insurance.
Even if you purchased insurance hours before the accident or property damage occurred, the insurance company will not offer coverage. By backdating your insurance policy, in effect, you would have been younger when the policy came into effect and, therefore, you would have to pay a lower premium. A gap in your coverage will affect your rates, but once you've established insurance for a certain period (usually a year), that increase will disappear and return to normal rates. If your friend sells insurance and you need their help to obtain pre-dated policy documents, don't convince them to help you or it could ruin their professional future.
Like all questions related to health insurance, the answer is “it depends; some insurance companies may allow backdating, but others may not allow it. That's why it's often easier to get cheaper car insurance if you have a flawless driving record. Find out if the insurance company you enroll with offers backdated insurance coverage before you buy the policy if you know you'll need to seek compensation for pre-existing damages. Avoid the need to roll back your car insurance by making sure you have the insurance plan that's right for you.
Insurance policies are almost always effective on the date of purchase, although it is also possible to purchase a policy before you need it and request that it take effect on a specific date in the future. However, if the damage occurred months or years ago, no insurance company will offer financial protection for the costs of repairs. We have a wealth of content to help drivers learn what questions to ask any prospective auto insurer and form a better knowledge base about the auto insurance industry. While most homeowners insurance policies start on the date of purchase, they don't cover same-day accidents.