When Canceling Auto Insurance, Timing Matters
There are a number of reasons that you may decide to cancel your existing auto insurance policy, such as finding a cheaper rate with another company, being called to active military duty overseas, or having an injury or illness that will keep you from getting behind the wheel of a vehicle indefinitely. In cases like these, canceling your existing policy makes a lot of sense, but it’s important that you do it in the correct way to avoid financial penalties.
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What to Expect When You Cancel Your Auto Insurance Policy
Unless you’ve gotten free assistance from a Nevada Insurance Enrollment auto insurance agent, doing your research and finding a new auto insurance policy that provides great coverage at an affordable rate is a lot of work. However, purchasing and agreeing to a new auto insurance policy is only the first step in making the switch. You still need to cancel your old policy to avoid paying for simultaneous coverage from both the old and new companies.
Letting a policy cancel for nonpayment can cause some problems. Most auto insurance companies have automatic grace periods for late-paying customers, meaning that you could end up paying for double coverage for three weeks or more, depending on your company. Failing to formally cancel your policy may also leave you on bad terms with the company, which could be a problem if you ever decide that you want to go back to them. Finally, if you’ve set up automatic payments, your policy may not cancel at all.
The easiest way to transition to a new policy is with the help of a Nevada Insurance Enrollment auto insurance agent. They can help you coordinate the switch to ensure all loose ends are tied up and there are no lapses in coverage.
Avoiding Lapses in Coverage
While you obviously don’t want to pay for double coverage any longer than you have to, you really don’t want to have a lapse in your coverage. Before canceling an auto insurance policy, especially if you don’t intend to carry auto insurance at all, consider how long you will be without a vehicle. If it’s only going to be for a few weeks or months, then your best bet will be to maintain your liability auto insurance coverage. Because auto insurance companies often charge higher premiums to those who have gaps in coverage, you may save money by simply trimming back your coverage to the minimum state requirement. This is very important.
Driving without auto insurance can land you in some serious hot water, both legally and financially. If there’s a chance that you’ll drive a vehicle at all, even if you don’t own one, then you should maintain your auto insurance coverage. Losing liability coverage will most likely put you in a higher risk category of driver, and your rates will be much higher.
Making the Switch with Nevada Insurance Enrollment
Before you cancel your auto insurance, talk to a Nevada Insurance Enrollment auto insurance agent. Our auto insurance agents can help you coordinate the switch to a new auto insurance company and ensure that you aren’t held financially responsible for coverage you don’t need.
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DISCLAIMER: It is important to note that the information contained herein is made general for the purpose of explanation. You should consult your policy for exclusions or other language that may alter your policy.