That’s what I was thinking. People cancel their insurance for a month or so, then sign up for another policy that has a lapse in coverage. Now you’re in a non-preferred line and now you’re paying double. In order to stay in a preferred line, you need continuous coverage. Also, you’re right about having a note on the vehicle. It required physical damage coverage.
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I didn’t own a car for about 6 months (yay cities), the “lapse in coverage” ended up costing more over 2 years than had I just paid them for the 6 months I didn’t have a car. Shame that it isn’t a fraud. No one should be forced to pay for something they are not using ours have no need for.