If you pay your insurance monthly with a credit agreement.....?

Question

assuming your car breaks down.... rather than claiming the insurance can you cancel the credit agreement ?

is this possible and would there be any negative concequences ?

Answer 1

You need to speak to your insurance broker as all policies are different..I dont think you will have a problem but you never know..If you explain the situation of either a cancelled credit agreement or a claim on the insurance i think you will get what you want..

Answer 2

You may pay monthly, but your contract is for a years insurance. The agreement can only be cancelled by the insurance company, who probably will do it if you explain the circumstances to them. If you just stop paying expect nasty letters and a visit from the bailiffs.

Answer 3

Yes. To not have insurance on a vehicle even if its broken is against the law unless its garaged or on blocks. In which case one has to obtain a release from the DMV. I went for two months without a car and kept up the payments because the new credit agreement costs extra, while switching it to a different vehicle does not.

Answer 4

Probably, since most states now have a data base of vehicles and insurance. If you call your insurance company and cancel your insurance, telling them you no longer have the car, they will notify the state and remove that car from the data base. If you just cancel the credit agreement, your insurance will be canceled for non payment as agreed, and the state will be notified of that. In turn the state will send you a letter to turn in your license as it has been revoked for failure to carry insurance as required by law.

Answer 5

Yes