What happens if you are "dropped" by your auto insurance company?

Question

Does it affedt your credit? will you have a higher rate from another company?

Answer 1

You no longer have insurance for one.
You may pay penalties for the days you were without insurance.
You will definitely have a higher rate.

Answer 2

Each insurance company has its own rating scale when it comes to determining your rates; and it would depend on WHY your previous insurance company dropped you in the first place. It also depends on what covereage you are getting. There are so many factors that are take into consideration when a company works out your premium.

I would not see how it would affect your credit, unless you have some unpaid bills and did not pay your insurance premiums.

Check around online and compare insurance companies.

Try going to Progressive online and see what you can find out about comparing rates:

http://www.progressive.com/

Or find an agent in your area that can find an insurance company that can give you the lowest rates.

Answer 3

It depends on the circumstances. I moved a few years ago. My entire premium was prepaid for the year. It went up $15 though because of the area I moved to. I was never sent a bill and my policy was cancelled. I had to switch companies and it ended up being cheaper. Go figure.