Let’s say you discover an insurance agency that offers much lower auto insurance rates than your current insurer does. Now, you want to switch to that company and leave your expensive rates behind. At this point, many people make an easily-avoidable mistake that ends up causing them more financial trouble in the long run. Don’t be one of those people!
If you stop making payments on your current auto insurance policy to go with the new, cheaper one, your credit score will most likely suffer. While discontinuing the payments will bring an end to your policy, the insurance company will probably report you to the credit bureau. Your insurance history will be affected negatively as well if you do not go through the proper cancellation process. Later down the road, this may cause other insurance companies not to cover you, or hit you with dramatically high premiums.
Moral of the story: respect the cancellation process of your current insurer to avoid future financial trouble. When you decide to make a switch to another company, let your agent know, and they will give you the necessary paperwork to fill out.
If you are thinking about switching to another insurer because your current premiums are too high, Insurance Navy offers cheap auto insurance policies, with rates as low as $39 to start. If you have any questions about switching to a more affordable auto insurance policy, the Insurance Navy agents will happily provide you with answers. You can also find more information about auto insurance on our website at www.insurancenavy.com