There are numbers of reasons for cancelling a car insurance policy. You can easily cancel your car insurance policy at any time by providing the replacement papers to the insurer. Cancelling the policy during the term of the insurance may charge a nominal cost. However, the decision should not be taken on a lighter note. There are several factors that need to be considered while cancelling your car insurance policy.
Here are the 4 Considerations before cancelling Car Insurance.
Reducing the coverage
A person who finds it hard to pay their car insurance tries to cancel the policy. Dropping the comprehensive and collision coverage is a good idea rather than cancelling the entire policy. You can still be covered for liability damage depending upon the selected coverage. Another possibility is to raise the deductible amount of comprehensive and collision policy plan. By increasing the deductible amount, the premium cost gets reduced. Thus, you save some money. However, this makes it important for you to drive safely. As an accident or car damage can cost you a lot. Evaluate your policy premium by using an online car insurance calculator to switch to an affordable policy
Time Period
It is one of the important questions you need to ask yourself before cancelling the car insurance policy. How long are you going to stay without your car?
If you’re choosing another source of transport for a couple of months, then you must keep the insurance active. Since it’s mandatory to have a car insurance, drivers are charged with penalties for not carrying their car insurance policy. So, if you wish to purchase a car insurance again after a certain period of time, then you will be labelled as a high-risk driver. The insurer also charges higher premium rates for not keeping the policy active.
New Car Insurance
You can switch to a new car insurance provider anytime you want. You can compare car insurance and select new car insurance online. Make a note, that your new policy gets active before cancelling the old one. A request for cancellation should be sent to the insurer.
Penalties
Many people tend to drive their car without an insurance policy to save money. Thinking that they won’t be needing it soon. But life events are unpredictable. Any moment you can be the victim of an accident. The uninsured driver will have to bear a whole lot more than the cost of the policy as getting caught in an accident without a car insurance policy can cost you everything. Also, you will be responsible for all the damages caused.
Car insurance is an essential and beneficial product which has more virtues than vices and it is always better to reconsider cancellation and have a look at other alternatives to keep your vehicle and you covered.
