No auto insurance company in Coppell, Texas can backdate a client’s auto insurance policy. Backdating an auto insurance policy means that the insurance agent will put a date on the client’s policy that is earlier then the date that the policy actually took effect.
The agent is attesting to the fact the client had insurance when they did not and this is illegal and considered insurance fraud. The reason that auto insurance policies cannot be back dated is because if there was an accident within the period the back dating took effect the company will have to pay. If there were extenuating circumstance the agent and their company could be in serious trouble. It does not matter if the client lives in Coppell, Texas or Timbuktu, back dating vehicle insurance is risky business, and no honest and upright insurance company would practice back dating.
If a driver cannot afford their premium when due, or just forgot to pay their premium, the insurance company can legally reinstate the policy, however the client will now have two payments due. This reinstatement must take place within a 30 day window of time. There cannot be any claims during this time. Many times the insurance company may make the client sign a waiver that there were no accidents during this time without automobile insurance.
If a driver is stopped by the police, and is found to be uninsured there is generally a large fine and it is possible that the person will have to go to jail. Some states have stiffer penalties such as suspension of registration and driver’s license. If one does have a lapse in insurance the driver could get a penalty for the time they drove without insurance.