Auto Insurance – Why Not to Cancel During Tough Times

It is a thought a lot of us have had. Dropping your car insurance policy to save yourself the added expense and to have money to spend on "more important" things. Doing so seems harmless, considering you probably only plan on dropping it for a short period of time, but rest assured there may be serious repercussions for your actions.

First and foremost, one primary reason you do not want to cancel your auto insurance policy because you are required by law to have one if you are an active driver. So, by banking, at this point you would be breaking the law, which is never a good thing. Not getting in accidents is just one of many obstacles you would have to avoid in order to not get caught. Being rolled over for speeding is a surefire way of getting talked with no insurance. In addition, several states set up surprise checkpoints in order to catch drivers that are not abiding by the laws. Sure, the checkpoint may be for seat belts or to check if people are driving under the influence, but while they have you stopped they will check for insurance as well. Insurance companies will sometimes report to either the auto finance company or onto an uninsured motorist list that police officers now have the ability to run your license plate number and receive a report back your insurance status. If the check comes back positive for you being an uninsured driver, they will waste no time in pulling you over to question it. Because of the law requiring insurance, obtaining caught without can result in stiff penalies.

Getting used without car insurance could result in a fine you have to pay, your drivers license being suspended, or even having to spend time in jail. Paying a fine would defeat your original purpose for saving your policy, to save money. Having a suspended license means you would be committing another crime if you choose to continue driving, in addition to the fact that you probably would not be opening an insurance policy before you drive either. As for spending time in jail, well, we all know what that is, and no one wants to go there. On top of the fines you may face, your car may be impounded as well and guess what that means, more money out of your pocket. First, the car can stay impounded until you pay for the original fine, but for as long as the car is impounded, you will be charged a daily fee for that as well. The cost could go very high in a very short period of time.

The law that requires that you carry auto insurance is not the only reason you want to keep your policy as opposed to cancelling it. The policy you have is there to protect you, your family, your car, and your finances. If you cancel the policy and get into an accident while uninsured, and the accident is your fault, not only will you have to pay to repair or replace your car, and pay for medical expenses for your family, you will also be liable for the damage to the other vehicle or property as well as their medical expenses. When the accident is filed on a police report, they will see that you're uninsured as well and you'll receive the fines, suspension, etc. also.

If any of this were to happen and you decide to do the right thing and open an insurance policy again, expect to pay even higher prices than before with your new company. Having the bad record of driving without insurance, you will be deemed a high risk driver and your premiums will be significantly higher than they ever were before.

The point to be taken here is to not cancel your auto insurance policy and continue to drive without it for any reason. If the reason is to save money, you will not. You will end up paying probably ten times what you are currently spending. Do yourself a favor, do your family a favor, and do the other drivers out on the road a favor and keep your coverage. We all experience tough times, but try budgeting in other areas and do not take the huge risk of dropping your coverage. If you are currently driving without auto insurance, do the right (and smart) thing and get another policy. Start with a quote, they are free, and you can see the prices for several companies and from there determine which one is right for you Avoid the huge mistake that will extend far beyond your financial problems and keep that insurance policy open regardless because it is simply not worth it to go without.



Source by Tod F.