If you have been contemplating whether you should cancel your car insurance or not, assess the situation first. You want to make sure that cancellation would be the best decision for you.
Insurance companies consider you as a high risk if there is gap in your auto insurance. It could create some issues even if it is just a few days of gap. The insurer will also give you higher premiums later on.
So, exactly when is cancellation the right thing to do? Here are some circumstances, wherein it makes sense to not renew or simply adjust your policy.
You sell your vehicle and do not replace it
Life situations may lead you to dispose of your car permanently. Probably, the reason is you want to cut down the number of cars that your family is using. Maybe, you now prefer to use public transportation in your daily commute. Another possible reason is that you will relocate to an urban town.
If you drop your insurance payment altogether, it could lead to termination of your policy. In such situation, it is best to call your insurance company about it. Ask them if a refund is possible should you cancel your policy before its expiration date.
You intend to store your classic car and not use it regularly
If you love your car but it is parked in your home most of the time, you may be considering dropping its policy. However, it is still vulnerable to some sorts of risks, for example, damage due to hail, falling objects, or theft. It is recommended to maintain your comprehensive coverage as a way to protect it from unforeseen disasters.
Contact your agent and ask about exhibition auto policy, which is suitable for your classic car if you only drive it to events and parades.
Your teenager is no longer living with you
If your child goes to college and he will not use your family car anymore on a regular basis, you may need to adjust your auto policy.
On one hand, if the car is in the name of your child and he leaves it at home when he goes to college, it is advisable to keep the policy. You may need liability coverage if your child drives the car whenever he visits home.
Depending on the situation, your agent will advise you on what steps to make if you are thinking about dropping your auto insurance. At Wellcovered Insurance Group, we do our best in making sure that our clients are well- protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (386) 218-4951 or Click Here to request a free quote.