Why you shouldn’t Cancel your Car Insurance
If you’re thinking about cancelling your automobile insurance, think again. Especially if you’re going to cancel it because you believe it’s too high or your rate just went up with your existing insurance company and you’re looking to go to another insurance company.
Why should you think twice about cancelling your car insurance for the reasons I listed above; because your insurance rate (premium) is partially based on whether or not you currently have insurance and often-times the rate becomes less expensive the longer you’ve kept your insurance active with the same company without it lapsing or being cancelled.
Some insurance company’s, often referred to as “standard-market” insurance companies, will not even consider you for insurance if you don’t currently have insurance. And guess what? Most of these standard market companies offer the best coverage and lowest rates.
As soon as you cancel your insurance and you are considered to have a lapse in coverage, your rates begin to increase when you finally do go an purchase insurance. Sometimes a lapse in coverage can cost you anywhere from $150 to $500 more when you go get another insurance policy, just because you allowed your insurance to lapse or it was cancelled – the reason’s for the lapse or cancellation doesn’t matter unless you have coverage elsewhere or another policy for the same vehicle.
So if you want to keep your rates low or even get better rates, shop around while you still have coverage – you’ll save yourself a lot of money and you won’t have to worry about driving around with no insurance.