If you’re anything like most people, you probably have a few questions about car insurance. Specifically, do I need it and how much does it cost? And if I cancel it, will that impact my rates? Although there are a few different ways to answer these questions, the answer is usually yes—you need car insurance. In fact, the Metropolitan State University of Denver has found that 97% of drivers in the United States have some form of auto insurance. However, even if you have car insurance, there are circumstances where you may be able to get out of your contract without any penalty. In this blog post, we will explore four such circumstances and explain what will happen if you choose to do so.
What is car insurance?
You may be able to cancel your car insurance policy before it starts if you move out of state or change your driving record. Canceling your car insurance policy before it starts can save you money.
Types of car insurance
There are a few different types of car insurance, and each one has its own benefits. Here are the main types:
Standard auto insurance covers you if you’re in an accident, but it doesn’t cover damage to your car. This type of insurance is usually cheapest.
Collision coverage provides financial protection if your car is damaged in an accident. This type of insurance is more expensive than standard auto insurance, but it’s worth it if you know you’ll need it.
Property damage liability covers you for physical damage to others’ property caused by the car you’re driving. This type of insurance can be expensive, but it’s important if you’re driving a high-value vehicle.
How to cancel car insurance
If you have car insurance with a company, it’s usually a good idea to contact them and cancel your policy before the start of the policy year. Doing so will save you money on your monthly premiums. If you don’t cancel your policy in time, you may be responsible for paying for the entire year even if you never use your car.
car insurance usually starts the moment you drive your car off the lot. However, some people find it easier to cancel their policy before it even begins if they have a good understanding of what their rights are. To learn more about your cancellation rights and when you can expect them to take effect, consult with a car insurance representative or read up on cancellation policies online.