Here’s how cancelling your auto insurance policy now will affect your ability to secure coverage in the future.
If you need to cancel your car insurance policy before your term ends, then you might be worried about the future impact of your premature cancellation. Fortunately, cancelling your auto policy for a legitimate reason should not impact your ability to secure affordable coverage in the future. Here’s what you need to know about auto policy cancellations.
Cancelling Your Policy
As mentioned above, cancelling your auto policy for a legitimate reason should not have negative effects on your insurability. This means your insurer will not punish you for cancelling your policy if you are selling your car, moving out of state, or so on. When you go to secure a new auto policy, you shouldn’t have issues securing coverage at a price that you can afford.
Having Your Policy Cancelled
Choosing to cancel your policy and having your policy cancelled by your insurer are two completely different scenarios. An insurer only forcibly cancels a policy when policyholders prove themselves too risky to insure. For instance, an insurer might cancel when the insured has missed payments, filed too many claims, committed insurance fraud, or showcased some other risky behavior. If your policy is forcibly cancelled, this will automatically mark you as high-risk to insure. Because higher risk translates into increased insurance costs, you will have a difficult time finding an insurer willing to offer you coverage at a low cost.
This is what you can expect when cancelling your auto policy. Do you have additional questions regarding your auto insurance? If so, contact the experts at The Schwab Agency in Colleyville, Texas. Our dedicated team is ready to assist you with all your car coverage needs today.