What Happens After You Cancel Your Car Insurance?

Most car insurance policies have a clause that allows the insurer to cancel the policy. The common reasons for an insurer to cancel a policy are non-payment of premiums, fraud, or misrepresentation. Here are three things that will happen when you cancel your car insurance.
1. Your Car May Not Move
Once you cancel your insurance, you may not be able to legally move the car.

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Your car cannot be driven on public roads until you reinstate your insurance policy.
2. Your Car Insurance Rates Will Go Up
Your rates will likely go up when you try to get insurance again. Insurance companies view drivers who have canceled their insurance as higher risk
3. You May Lose Your Registration Refund
If you cancel your car insurance mid-term, you may be entitled to a registration refund insurance. However, if you have already paid your yearly registration fee, you will not get a refund of that fee.
Bottom Line
Canceling your car insurance can be a hassle, and it may even cost you more money in the long run. If you are canceling your policy, make sure you have another form of insurance to continue driving legally.

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