How Does Canceling My Auto Insurance Affect My Future Rates?

How Does Canceling My Auto Insurance Affect My Future Rates?

If you choose to not renew your auto insurance, you could face higher fees in the future.  

There are a number of valid reasons for which you do not want to renew your auto insurance. Whether you are selling your vehicle to rely on public transport, moving away, or taking your car off the road to rebuild the engine, you may be considering canceling coverage. But before you do, you should know how this affects you in the future.

Insurers will determine your car insurance premium on a number of factors, from your age, gender, vehicle, and driving history. They will also look at your previous auto insurance history to see if there are any gaps or frequent claim patterns. If they see you’ve had a gap in coverage for some time, you could be classed as a high-risk driver. Even if you were a perfect motorist before that, you could end up paying higher fees than before.

If you are selling your vehicle to purchase a new one, consider keeping your coverage to cover this short amount of time. Call your insurer and let them know so that they can arrange the right coverage to stay in place so that you don’t have any unnecessary gaps. If you are selling your vehicle and won’t own a car, consider asking a friend or family member if you can be added to their policy. This is a small price to pay for continuous coverage!

Remember that driving a vehicle without insurance is illegal. If you do not have coverage and are not a named driver on your friend’s car, then getting behind the wheel can be incredibly risky. Not only could you face a fine if you are court, but you could be looking at jail time.

Your safest bet is to keep reliable auto insurance in hand. For your car insurance needs in Phoenix, Arizona, contact the professionals at American Premier Insurance. We are ready to get you reliable coverage.