Why Drivers Usually Drop Car Insurance?

Find out the top reasons why drivers usually drop car insurance and get free online auto insurance quotes from our website.

  1. Car insurance policyBecause it is too expensive. This is the most obvious and most common reason why so many drivers choose to go uninsured and underinsured. While an insurance gap may save them money on the short term, on the long term it may cost them more.  Keeping coverage active, especially full coverage is a costly matter.  And when you lack the resources, going without coverage seems so appealing to many.
  2. Because it covers not so valuable cars. Keeping multiple policies active for a not so valuable car may seem a bit too much. And many drivers think so, too. This is why dropping full coverage on older than 10-15 years cars may seem a good decision. But before dropping coverage, make sure to check the current value of the car. One of the golden rules of auto insurance is to compare the current value of the car with 10 full coverage premiums. If the value of the car does not surpass the value of 10 full coverage premiums, consider dropping coverage and investing in an emergency fund.
  3. Because they’ve been through recent changes. There are many events which can make a person give less importance to car insurance. For example, when getting sick or when no longer having to drive so much. Retiring will make you drive less and need less coverage. Again, consider dropping extra services and full coverage, but keep minimum liability coverage active.
  4. Because they no longer have a car. This is another no brainer. But if you no longer have a car, you should immediately announce the insurer and cancel the current plan. Otherwise, if you stay uninsured, this may be considered a gap and you will pay more the next time when you will own a car and need car insurance.

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