How do you cancel car insurance and changed insurance?

Answer 1

Insurance can be canceled in a couple of ways. The easiest is to refrain from paying the next premium whereupon the policy will cancel for lack of payment of premium. However, it is important, before you do this, to have suitable new insurance in place. You need this for self-protection, and also because all states require compliance with Financial Responsibility Laws. These laws require the maintenance of auto insurance, and inn the event of noncompliance, your license and tags can be suspended.

Additionally, if the car is financed, the bank or finance company will require proof of insurance to protect its interest in the collateral. Failing receipt of the proof, it will obtain single party insurance on the collateral to protect its interest. This is usually much more costly than naming the financier as a loss payee on your collision coverage through your own insurer.