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A clause in licies allows an insurer to cancel the policy. An insurer can cancel policies for any of a number of causes, such as non-payment and fraud, or misrepresentation. These are the three most common things that can happen to your insurance policy when it is removed.
1. You may not be able to move your car
It is possible that you will be barred from driving your vehicle legally after you’ve cancelled insurance. Until you have reinstated your insurancecoverage, your vehicle will not be able to drive on public roads.
2. The cost of car insurance for you will go up
It is likely that your rates will go up when you try to renew insurance. Insurance companies regard motorists who’ve cancelled their insurance as more risky
3. You May Lose Your Registration Refund
The right to claim reimbursement from insurance on the day you decide to cancel the insurance on your vehicle. However, you will not be able to have your registration costs returned if you have already paid for them.
Bottom Line
Removing your car insurance could cause hassle, and it may be costly more. If you’re cancelling your insurance, ensure you have another form of insurance to continue driving legally.
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