When car owners have to cancel their auto policy before their term is up, many express concerns about how their cancellation will affect their ability to secure car insurance in the future. Luckily, if your cancellation is made for a legitimate reason, you don't really have to worry. Here's more information on what a cancellation will mean for you down the line. Cancelling Your Policy When people cancel their auto policies, it's generally because of a legitimate reason. For instance, many cancel because they are moving away or selling the car that the policy is on. When you choose to cancel your policy, your insurer will not hold this against you. This means that your cancellation will not affect your ability to secure affordable car coverage in the future. Insurance Gaps That being said, you can run into trouble if you fail to secure new coverage after cancelling your policy. When there is a gap in your auto coverage, insurers are more likely to see you as high-risk to insure. This means that you may have a harder time securing auto insurance with low premiums. To avoid gaps in your coverage, you can secure a new policy immediately after cancelling your old one, or ask a loved one if they can temporarily add you to their policy. This way you can have coverage to tide you over until you secure a policy of your own. This is what happens when you choose to cancel your auto policy before your term ends. Do you have additional questions regarding your auto insurance? If so, contact the experts at John E. Peakes Insurance Agency. Our dedicated team is ready to assist you with all your coverage needs today.
