Many Colorado drivers face a familiar moment after a policy cancellation or lapse: the insurer asks, “Did you have any accidents while uninsured?” It’s usually in the form of a “no-loss statement.” But what does that really mean—and should you sign it? Your insurance agency at AFI Insurance, serving Denver, CO, has answers.
What Is a No-Loss Statement?
A no-loss statement is a signed declaration confirming that no accidents, damages, or other claimable incidents happened during a period when your auto insurance was inactive or lapsed. It’s a legal affirmation that nothing occurred that could lead to a future claim.
When You’ll Be Asked to Sign
- Insurers typically request it after one of two situations:
- Your policy was canceled or lapsed due to non-payment, and you’re applying for reinstatement.
- You applied for insurance during or immediately after a natural disaster or regional moratorium, which is common following wildfires or floods.
Why Insurers Require It
By requesting a no-loss statement, companies protect themselves from inadvertently covering events that occurred when they weren’t providing protection. It prevents situations where people let policies lapse, damage their cars, and then try to reinstate coverage to file a claim.
Is Signing Safe for You?
If you genuinely had no incidents while uninsured, signing is straightforward—it restores your coverage to the original policy terms. Insurance companies often prefer issuing a new policy over renewing an existing one.
What If You Had Accidents?
Never sign the statement if you did experience an incident. That could be considered insurance fraud. Instead, alert your agent at AFI Insurance, serving Denver, CO, and they’ll help you explore reinstatement with exclusions, higher rates, or a new policy. Have more questions? Get in touch with us today to learn more.
