What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

How can I give up my car insurance?

Even though most people are looking to getting their cars insured, some of you might want to know what happens if you want to give up on your auto insurance for various reasons. And we must say that giving up on auto insurance is not difficult, but it is important to know when and how to do it so that we won't have to pay anything for it.

You might wonder who would want to give up on their car insurance? Well, there are numerous examples, starting with people that simply cannot afford to pay it anymore to the ones that have sold their car.

How to Cancel Your Car Insurance Effectively

And the first advice we can offer if you find yourself in the position of giving up on your insurance is to have a meeting with your insurance agent. Inform him of your intentions and he will probably offer you a solution that will allow you to terminate the contract with minimum financial implications. Keep in mind that the worst that can happen would be to pay the whole premium until the contract expires, but this is certainly something that none of us wants.

In case you simply stop paying it, the whole thing will probably get on your credit report and this is again something you would want to avoid at all costs. Therefore, the only good solution you have is to try and terminate the insurance contract after a meeting with your agent and after you discuss all the implications of this action.

Pitfalls of cancellation without notification

After getting enough service from your insurance policy or certain insurance company you can request for the cancellation process. The cancellation process is quite easy with most of the companies but there can be so many pitfalls if you did not inform it to your insurance company. You can cancel it by mail or fax, the written application or can cancel it personally. You can ask for help from the agency to cancel it also.

But if you cancel the policy without notifying the company, it can be a big issue or pitfall.

  1. First of all, it may leave quite a bad impression on your insurance agency and you will miss all the good terms of the company. You will also miss the chance to return to the same agency again. To avoid such awkwardness, it is better to inform your agency before leaving it.
  2. If you do not notify your company of cancellation, you are certainly canceling it for nonpayment and you will be subjected to pay for the grace period.
  3. If you are on an electronic money transfer process, you must need to cancel the policy otherwise the policy will persist and money will be transferred from your bank account. In such cases, you will get duplicate coverage.

Alternative to Car Insurance

Below are those states in which not necessarily car insurance. The drivers can self-insured own auto by depositing cash with the state or to purchase a bond. Your credit score and assets affect the bond rate. Also in every state is it's own bond rate.

State Bond/Deposit State Bond/Deposit
Alabama $50,000 New Mexico $60,000
Arizona $40,000 New York $25,000
California $35,000 North Carolina $85,000
Colorado $35,000 Ohio $30,000
Delaware $40,000 Oklahoma $75,000
Idaho $50,000 Rhode Island $75,000
Indiana $40,000 South Carolina $35,000
Iowa $55,000 South Dakota $25,000
Louisiana $55,000 Tennessee $60,000
Maine $127,000 Texas $55,000
Maryland $75,000 Utah $160,000
Massachusetts $10,000 Vermont $115,000
Mississippi $15,000 Virginia $50,000
Missouri $60,000 Washington $60,000
Montana $55,000 Wisconsin $60,000
Nebraska $75,000 Wyoming $25,000
Source: http://www.pciaa.net/, state insurance and motor vehicle codes

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