By Grace Hancock
Can you cancel your car insurance at any time? The short answer is yes, but it depends on your insurance policy. A better question would be, should you? In this article, we break down the reasons why you should and should not cancel your car insurance.
When You Should Cancel:
There’s only one situation in which it’s a good idea to cancel your car insurance, and that’s if you’re selling your car and not replacing it. Maybe you’ve decided to no longer drive. Or, maybe you’ve moved to a new city where you don’t need a car. Whatever the reason, why insure a car you no longer have?
When You Should Not Cancel:
If you drive a vehicle, it’s always a good idea to insure it, in fact, it’s necessary. Think you need to cancel your car insurance? Chances are what you really need to do is switch providers or policies. Here are a few common situations in which you may think to cancel your car insurance and what you should do instead:
You Can No Longer Afford Your Insurance Policy
Instead of canceling your car insurance, ask an agent if your insurance company offers discounts. If you don’t qualify for a discount, you may consider looking at other coverage options that will lower your premiums.
If you can’t pay your insurance premiums, you have a grace period to pay before you experience a lapse in coverage.
You Don’t Drive As Much as You Used To
Let’s face it, we’ve all been driving less because of the COVID-19 pandemic. But, the fact that you’re not driving as much as you used to is no reason to cancel your car insurance. If you think you won’t be driving as much for the foreseeable future, you can consider adjusting your coverage to lower your premium and monthly payments.
You Start Working As a Driver for a Ride Share App
Florida requires all Uber, Lyft, and other rideshare app drivers to have auto insurance coverage whenever their rideshare app is on. The Florida rideshare auto insurance requirement is typically met by the employing company, but rideshare drivers are still encouraged to buy a rideshare insurance policy for their personal auto insurance policy.
This is because your regular car insurance isn’t designed to provide you coverage for when you are working as a rideshare driver. Having your own rideshare insurance as a driver allows you to have higher liability limits when you don’t have a passenger. It can reduce the deductible you would have to pay as a driver if your car is damaged.
A Less Common Situation: You Move to a State That Doesn’t Require Car Insurance
While auto insurance laws vary by state, 48 out of 50 states require that you drive with auto insurance. Virginia and New Hampshire are the only two states where it is not mandatory for all drivers to have car insurance. Drivers in these states are still suggested to purchase car insurance regardless of the requirement.
How To Cancel Your Car Insurance Policy the Right Way
If you want to cancel your car insurance, speak to an agent before you stop making payments. It’s common courtesy to give your auto insurance provider advanced notice that you’re canceling your policy. You can call your insurance agent or meet with them in person.
You can also mail or fax a signed cancellation letter to your insurance agency. When you write a cancellation letter, you want to include your full name, policy number, and the date you want your coverage to end. Ask your insurance agent if you can have your premiums refunded or if you can use your prepayments to cover any cancellation fees.
If you are not happy with your current car insurance policy, consider switching providers. You do not need to cancel your current insurance policy before switching providers. Your new insurance provider will be able to help you cancel your former car insurance policy.
Some insurance companies require a notice period of typically thirty days to cancel your car insurance without penalty. Contact your insurance provider for more information.
Florida Uninsured Motorist Coverage and Why You Need It
Florida is among one of the states with the most uninsured drivers in the country. That means if you are injured in an auto accident in Florida, there’s about a 1 in 4 chance that the driver who hit you doesn’t have insurance that’ll cover damages caused to you. This is called uninsured motorist auto insurance coverage, or UM coverage.
UM coverage is often used interchangeably with UIM coverage, but there is a slight difference between the two. UIM, or underinsured motorist coverage, protects you in the event that the at-fault driver has auto insurance, but not enough to cover your damages.
Your Tampa Car Accident Lawyers: Hancock Injury Attorneys
For more information on car insurance, auto accidents, and more, check out our blog. If you are injured in a car crash caused by someone else’s wrongdoing, give us a call. We’ll see what we can do for you. Our experienced attorneys will be able to check your claim and tell you what you can do moving forward. Call us at (813) 901-1110 to schedule your free case consultation today.