outcomes of cancelling your auto insurance

What Does it Mean to Cancel My Auto Policy?

Here’s how cancelling your auto policy will affect you down the road.

If you need to cancel your auto insurance in Plano, Texas before the completion of your term, you may be worried about how this will affect your ability to secure car coverage in the future. Fortunately, cancelling your auto policy for a legitimate reason will not have negative effects on your insurability. Read on to learn more about the future impact of auto policy cancellations.

Cancelling Your Policy

As mentioned above, most insurers will not punish you for cancelling your policy for a legitimate reason. For instance, if you cancel your policy because you are selling your car or moving out-of-state, your insurer will not hold this cancellation against you. This means you shouldn’t have issues securing affordable car coverage in the future.

Forced Policy Cancellations

If your insurance company cancels your policy, this is a different situation entirely. Insurers only cancel policies when the policyholder has proven themselves too risky to continue insuring. For instance, insurance providers may cancel as a result of missed payments, too many claims filed, failure to meet the terms of the policy, insurance fraud, and so on. If your auto insurer forcibly cancels your policy, this will automatically flag you as a risky car owner. As always, increased risk will translate into increased costs. This will make it more difficult to find an insurer who will offer you coverage for a low rate.

This is how cancelling your auto policy will affect you in the future. Do you have additional questions regarding your auto insurance in Plano, Texas? If so, contact the experts at Tri-Star Insurance/HUB International. We are ready to assist you with all your coverage needs today.