When Wayne Schneider received a quote of more than $1,000 a month for car insurance, he thought there had to be a mistake.

"I was just astounded," the 66-year-old Freeport resident said.

But the steep premium wasn't the result of an accident, speeding ticket or DWI. Instead, Schneider says the increase stemmed from a decision he made while he did not even own a vehicle.

After getting rid of his truck because of mechanical problems, Schneider canceled his auto insurance policy and went 10 months without a car, or coverage. When he later sought insurance again, he was shocked to learn that the lapse had dramatically increased his rate.

"It makes me feel like ... no independence left," Schneider said. "That much money ... it's more than I get a month."

Consumer advocates say Schneider's situation is far from uncommon.

Many insurance companies consider factors beyond driving history when calculating premiums, including a customer's credit profile, housing status and whether they have maintained continuous insurance coverage. Drivers who experience a lapse in coverage often face higher rates when they return to the market.

"Many companies use socioeconomic factors such as a coverage lapse to evaluate what type of premium they're going to charge you," said Chuck Bell, a financial policy advocate with Consumer Reports. "If they decided to park the car for three months because they can't afford auto insurance premiums, they're going to have a lapse in coverage, and they're going to get surcharged for that."

Advocates argue that the practice can disproportionately affect low-income consumers, creating a cycle in which financial hardship leads to higher costs in the future.

For drivers who have already experienced a lapse in coverage, experts say there are several strategies that may help limit the financial impact.

One option is to provide insurers with documentation showing that a vehicle was legally taken off the road. A license plate surrender receipt from the Department of Motor Vehicles may help demonstrate that the car was not being driven during the lapse period.

Another possibility is purchasing a non-owner insurance policy. These policies, which generally cost significantly less than traditional auto insurance, can help maintain continuous coverage for people who do not currently own a vehicle but may drive occasionally or plan to purchase a car in the future.

Consumers may also be able to avoid a coverage gap by being listed as a driver on a household member's policy when appropriate.

Schneider said he never would have canceled his insurance had he understood the consequences.

"I called the insurance company. They said nothing to me," he said. "If that's what's going to happen, shouldn't they say it?"

While ending a policy may seem like a sensible way to save money, experts say maintaining some form of continuous coverage can help prevent substantial premium increases later on.

Liberty Mutual Insurance said it could not publicly discuss the details of a customer's policy.