Does Cancelling My Insurance Affect My Car Insurance Rates Later On?
What You Should Know About Your Cancelled Auto Insurance
Whether you’ve sold your vehicle or plan to rebuild your engine block over the winter, there are many good reasons why you want to cancel your auto insurance in Redlands, CA. Major life events like moving, getting married, getting divorced, or opting to go eco-friendly can mean that you get rid of your vehicle and, with it, insurance coverage. However, before you call your insurer and cancel, you should realize that this can impact your rates in the future.
Many insurers will look at your history of car insurance when determining your premium. Typically, the longer you’ve had coverage, the better the rate (as long as there are no red flags like frequent claims). If you cancel your policy and then look to get coverage down the line, insurers could see this gap as a red flag. One way to avoid a lapse in coverage is to ask a family member or friend to add you to their insurance policy. This will show up as you still having coverage, but you don’t have to keep or buy a vehicle.
If you cancel a policy before the end of the term, you are failing to agree to the terms in the contract. This can come back to haunt you when you next look for insurance. If you are forced to cancel coverage (i.e., the insurer cancels the policy because you fail to pay on time, receive too many traffic infractions, or you are now considered a high-risk driver), you should act quickly. This doesn’t give you a free pass to drive without coverage, remember. If you’re caught without insurance or have an accident after your coverage has been canceled, you could face serious fines.
However, insurers know that life happens. As long as you don’t have a history of always cancelling your car insurance early and no long lapses in coverage, you shouldn’t see too much of a difference in your rates.
If you’re keeping your vehicle and coverage, you deserve an auto insurance policy that works together to bring you the best possible coverage from an insurer with your best interest in mind. For quality coverage, contact Little & Sons Insurance Services today.