Here’s what happens when you cancel your auto policy.
If you have to cancel your auto policy before your term is up, you might be worried about how this cancellation will affect your ability to secure car coverage in the future. Fortunately, cancelling your policy for a legitimate reason should not have any negative effects on your insurability. Read on to learn more about the effects of a policy cancellation.
As mentioned above, cancelling your policy for a legitimate reason will not affect you in the future. For instance, if you have to cancel because you are selling your car or moving out of state, your insurer will not hold it against you. This means you should not have any issues securing affordable auto insurance in the future.
While you will not be affected by a voluntary cancellation, having your policy forcibly cancelled by your auto insurer is a completely different issue. Generally, insurers only cancel coverage when the policyholder has proven themselves too risky to insure. Many cancellations are the result of missed payments, too many claims filed, insurance fraud, and other issues. If your policy is cancelled, you will automatically be flagged as high-risk to insure. As higher risk translates into higher premiums, you will have a difficult time finding an insurer who is willing to offer you coverage at an affordable rate.
This is how cancelling your car insurance will affect you in the future. Do you have additional questions regarding your auto insurance? If so, contact the experts at Weeks & Associates Insurance Services in Thousand Oaks, California. Our dedicated team is ready to assist you with all your coverage needs today.