What Does Cancelling Your Auto Policy Mean for Your Future Rates?

Here’s what you can expect after cancelling your auto policy.

While there are many reasons why you might have to cancel your auto policy before your term is officially over, you may be concerned about how your premature cancellation will affect your future car coverage. Contrary to what you might believe, cancelling your policy for a legitimate reason should not have negative effects.   Read on to learn more about the repercussions of auto policy cancellations.

Voluntary Cancellations

As mentioned above, cancelling your auto insurance for a legitimate reason should not affect you negatively. For instance, if you need to cancel your coverage because you are selling your car or moving out of state, your auto insurer will not hold it against you. This means you should not experience difficulty securing affordable car coverage in the future.

Coverage Gaps

That being said, if you cancel your policy and then go without auto insurance for a while, this coverage gap could have negative effects. Anytime a driver goes without coverage, they are considered riskier to insure. As always, higher risk translates into higher insurance costs. If you would like to avoid this, make sure you secure an auto policy immediately after cancelling your old one.

This is what you need to know about policy cancellations and your ability to secure affordable auto insurance in the future. Do you have additional questions regarding your auto insurance? If so, contact the experts at Stromsoe Insurance Agency in Murrieta, California. We are ready to get you the coverage that you need today.

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