Two; financed vehicles must be insured at all times. You can't temporarily cancel an insurance policy, it just doesn't work that way. If you want to cancel your policy because you are no longer going to drive, for example, if you are going to leave the country for a while, don't let the policy expire. Instead, call your company and tell them that you want to cancel.
Letting your policy expire is not the same as not renewing it. The biggest disadvantage of canceling is that it creates a lapse in your insurance history. Customers with continuous insurance generally get better rates than drivers who have gaps in coverage, who are typically labeled as “high-risk drivers.” Older vehicles depreciate in value, so some insurers won't insure a vehicle that's worth less than the cost of insurance. In addition, compulsory insurance may include the minimum amount of liability insurance that your state requires, if any.
Allowing your car insurance to expire when you've financed your car will likely violate the contact you've established with your lender, and then they have the right to force you to take out insurance or even to regain possession of your vehicle. Generally, you must take out comprehensive coverage along with collision coverage, but your insurer can make an exception and allow you to maintain a policy that only covers all the risk, also known as “car storage insurance”, if you are going to keep your car for the long term. If the DMV or the insurance company see that your policy has expired, they can contact your insurer. None of the steps your insurer or the DMV can take should surprise you if you've let your car insurance policy expire, since the insurance company must contact you before canceling it.
Now isn't the time to pay for things you don't need, and that includes car insurance for an idle vehicle. If you receive compulsory insurance after letting the original insurance on the financed car expire, start looking for a plan right away. You may need to file an affidavit of non-use because your car would no longer have enough insurance for anyone to drive it legally. If you're still using the car, you'll want to keep it insured to be protected legally and financially.
Instead of changing your coverage, you may be able to temporarily withdraw from a family car insurance policy. Some DMVs will also want to suspend or revoke your license if they discover that you don't have insurance for your car. If you don't take out car insurance again, they may want to regain possession of your car, especially if you're found driving and you get a ticket or have an accident. Fixing and forgetting your credit card with your auto insurance company is good, especially if you get a discount for doing so, but make sure you have the email and email from your insurance company aware of it when you do so.
If there is a problem that causes you not to make the payment, here's what happens when the insurance for a financed car expires and what you can do to fix it. As with a suspension, your state may require you to file an affidavit of non-use to officially remove the car from the road and cancel the insurance required by the state.
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