Canceling Auto Insurance Could End Up Being Costly

Car collided with treeDuring an economic downturn, drivers may be tempted to cancel or reduce coverage in order to cut insurance costs, this may be a costly decision.

This attempt to cut costs can come with repercussions, and it may end up costing consumers more to be uninsured than to stay covered. Most states require some sort of automobile policy in order to legally operate a vehicle. If drivers are caught without coverage, they could get a citation or even have their vehicle impounded.

“Certain states take these laws much more seriously and will suspend a person’s driving privileges and vehicle registration in addition to fines which cannot be reinstated until proof of coverage is obtained,” insurance expert John Pirro said. “This can end up being far more expensive than the cost of auto insurance.”

If drivers are involved in an automobile accident and don’t have the proper coverage, paying for injuries, property damage, and even a lawsuit can cause great financial hardships. In some cases, a forced insurance policy can be placed by a financial institution if a consumer fails to comply with their loan agreement.

If drivers are looking for a way to save money they should speak to their provider or agent and explain their specific financial situation to them to see if a more affordable auto insurance policy can be obtained rather than canceling coverage.ADNFCR-3298-ID-19799856-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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