Auto insurance cancelled today, can I go to new company?

I just got a new car a few months ago and was paying $325 a MONTH for my insurance. Way too expensive. I want to cancel and go to another company (nationwide or all-state) where I was quoted $195 a month. I dont have the money to pay the current insurance $325 for the month, then cancel it (which adds another $90 or so for cancellation fee), and THEN open a new policy with another company for $195. Thats $615 just to switch insurance companies! So, I let my current insurance lapse and it was cancelled as of last night for non-payment. Now, can I open up the new insurance with another company today, then pay off the old insurance in a couple weeks?

Public Comments

1. yes but be careful of the new companies policy on dislosure of anything they should know . You do not show any intent to defraud the first company so go for it.
2. Yes, go ahead and get insurance with the other company today. Make sure you call the old company and sign a cancellation request so there is no mistaking that you want the policy cancelled. If you still owe them anything they will send a bill for it.
3. Sure, but you will be considered a high risk because your last insurance lapsed.
4. It is possible, but not always. If you are accepted by a new company, you will be charged for a lapse, because you have not had continuous coverage for the last 6 months. Once you carry insurance at your new company for 6 months with no lapse in coverage, your premium will go down. For that reason, I would start out with a 6 month term, and then if you want, switch to a 12 month term.