You can cancel your required auto insurance coverage when you return the license plates to the Registry of Motor Vehicles or when you change your insurance provider. Your auto insurance can even get cancelled in the case of it getting lapsed when you do not pay your renewal premium amount within the grace period allowed.
When you cancel your vehicle insurance policy without renewing or applying for another one, the insurance company will have to take the plate receipt from the Registry of Motor Vehicles before it cancels your insurance cover. When you change your insurance provider, you have a month’s period from the effective date of your policy to make that change; failing which, you may be penalized. There is no penalty involved when you cancel the optional coverages. You have the freedom to cancel any or all of the optional coverages during any time of the policy year by issuing a formal request to your insurance provider.
In the case of cancelling your car insurance on a premature basis, the penalty fees are reasonable and you can manage that.
What are other situations where your auto insurance policy may get cancelled?
If the insurance company cancels your auto insurance cover, it will happen within the first couple of months from the date of the issue of the policy. The insurance company can check your records and can cancel the policy without submitting any reasons. This usually happens if any information you give on the application turns out to be false or inaccurate. It could also happen as a result of false claims or if it is found out that you have a DUI conviction or traffic accidents’ record that you did not disclose about at the time of applying.
In all these above situations, you can take few steps towards getting auto coverage protection. If your policy lapses due to a delayed payment, you can always get the same policy reinstated and you do not have the hassle of going through medical examinations for that. This still works out cheaper for you than looking for new insurance providers who may not give you any discounts or benefits as your current insurance company.