Can I Get Backdated Auto Insurance?

The idea of auto insurance is to protect drivers financially against the potential costs of car accidents. The essential idea is that you are paying for cover so that any costs incurred by you will be paid on your behalf, with only an excess left to pay.

It is a legal requirement that all drivers have auto insurance so that they will be able to cover the costs that other drivers or property owners might incur as a result of their accidents.

For example, were you to collide with another driver and it was found that the accident was your fault, then your car insurance would normally pay out to cover that cost. Without car insurance, there is the possibility that you might not have been able to pay for this damage, thereby leaving the injured party without the compensation that they deserve or that they require in order to get back on the road. Likewise, insurance makes sure that you will be able to pay out for damage caused to the property of others or of the state.

But what if you didn’t have insurance? Is it possible to backdate that insurance and get a company to pay out regardless?

Why Backdated Car Insurance is Not Possible

There are a few different scenarios where an individual might find themselves needing backdated car insurance. For example, if you find that your previous policy expired but you were not aware of it, then you might wish to take out insurance to cover the period you missed. Likewise, you may have purchased a car and driven it home from the garage, only to have an accident.backdated car insurance

So in these circumstances, what can you do? Can you get a driving insurance policy and then backdate it for the date needed?

Unfortunately, the answer is no. While it would be very useful for the driver and the victim to be able to get backdated insurance, the problem is that this would in no way benefit the auto insurance companies.

What you need to remember, is that auto insurance companies need to make money just like any other business. These organizations work by charging a monthly fee and then paying out only in the event of an accident. The aim is to ensure that they make more money from those fees than they lose through pay-outs. Thus, they try to make their policies all the more appealing to those drivers that are unlikely to have accidents. The greater the proportion of safe drivers, the greater the profit margins are likely to be. This is why it’s often easier to get cheaper auto insurance if you have a history of having very few accidents.

But if you take out car insurance and backdate it for a time prior to when you had an accident, then you are guaranteeing that the company will have to make the pay out and therefore that they will lose money from doing business with you. And if a company were to offer this option, then no doubt they would get a large rush of people who had been in accidents all looking for backdated insurance! It would probably not be long before the company went entirely out of business!

Legal Issues With Backdated Auto Insurance

There are also legal issues surrounding the concept of backdated insurance. The whole idea of insurance is to make drivers safer on the road by giving them the legal means to pay for their damage. It is illegal to drive without insurance for this reason.

But were it possible to get backdated insurance, then that would make it hard for authorities to identify those driving without the correct insurance. In short, it would make it much easier for drivers to commit fraud and to get away with driving without insurance – by quickly taking out backdated policies when they needed it.

What You Should Do

Some websites will allow you to backdate your auto insurance simply due to the way that they are designed. However, this is not encouraged and if you attempt to do this, then you will likely find yourself in even more legal trouble.

The best thing to do then is to try and pay for the damages yourself. In order to do that, you will need to look for financial aid and the best chance of finding this is to look for a loan. That way, you can pay back the damages that you have caused over a period of time which will hopefully be more appropriate for your cash flow.

You may find that this lands you in legal difficulty as well but unfortunately, there is nothing you can do at this stage except for facing the music!

No-Loss Form

One exception to this rule, is that if your auto insurance policy stopped due to non-payment and you have had no accidents in the meantime, you might still be able to pay for the time in between and to reinstate your policy. This will prevent there from being any gaps in your coverage but you will need to sign a no-loss form to state that there were no losses or accidents during the time while your policy was not in force. This is usually only possible as well where the lapse in coverage has been less than 30 days.

In short, the best way to be certain you are covered is simply to stay on top of repayments and to read the small print carefully!


  Comments: 6

  1. Ida Mae Nitsche

    What if you get a non operative car and when you get it fixed before you have a chance to get insurance you get pulled over and you get cited for no insurance. Can you get the insurance company to make the policy effective backdated to the date prior to when you got pulled over. You can pay the premiums for the entire month prior to the date you were pulled over and every month there after so the insurance company wouldn’t lose any money in fact the insurance company would get payment for a month when the customer could and w/o sins s no loss form.

    • Andrew@4AutoInsuranceQuote

      Hi Ida,
      Unfortunately, no this is not possible. First, the insurance company will know that you got pulled over because it will be on your driving record, which they will run before issuing your policy. Second, if you were able to do it (which you can’t), it would be illegal to do so and could result in fines and/or an arrest. It is illegal to commit insurance fraud, which is what this would be. Insurance only pays and works if it’s bought and paid for truthfully and for unexpected accidents that happen after the policy is in force.

  2. My daughter was pulled over and she had no auto insurance so she was ticketed for no insurance. Are there any insurance companies that will back date an insurance card when I purchase the insurance for the court?

    • Andrew@4AutoInsuranceQuote

      Hi Deborah,
      Unfortunately, no this won’t be possible. No insurance company will backdate insurance for you to prove that she had insurance, when in fact she did not. This is illegal and technically falls under the umbrella of insurance fraud, so no insurance company would want to risk doing this. Also, this would be impossible anyway because the insurance company would know about the ticket when they run her driving record. You can only purchase new insurance on the current date or a date in the future, never in the past.

  3. I had a boat policy on my ins. For the last 10 years that i have been paying for and havent had the boat for last 8 yrs how far back will my ins reimburse me

    • Andrew@4AutoInsuranceQuote

      Hi Aaron,
      This will depend on your insurance company. Some insurance companies are willing to go back farther than others. However, no insurance company will go back more than the start of the current policy period. This means that you won’t be able to get at least 7 years of that premium back. If you are currently in the 8th year and have already paid for it, some companies might be willing to backdate the cancellation to the start of the policy period. Other insurance companies might only be willing to go back 30 days or less.

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