Car Insurance Cancellations Not An Option
Reasons Why You Should Not Cancel Your Car Insurance
The most common answer to the question of why would you cancel your car insurance is that you have been encouraged by a friend, relative or acquaintance. Perhaps they have given you false information or perhaps they have done something illegal, which has injured you or caused an accident. But, in the vast majority of cases, the reason for the cancellation of car insurance is purely financial. Car insurance is expensive, and if it is too expensive for you to pay then you will not be able to purchase one. You may be able to make arrangements to have the policy re-priced at a lower rate, but this is often not possible. So, when the time comes when you find you cannot afford to pay the premiums any longer, you cancel your policy and move onto greener pastures.
Another example of people who might want to cancel their motor cover, is those who have found the car insurance was more expensive, than they had initially believed. It is also true that in the event of an accident you do not want to get yourself involved financially. When the costs of repairs and possibly a lawsuit are considered, you may decide it is better to cancel than risk being under-insured, or having to go to court and deal with all the ramifications that follow. If you cancel your policy you will not be responsible for these costs and, if sued, it is unlikely that your insurance company would stand by their clients.
There is another valid reason for someone wanting to cancel their car insurance as well. Sometimes, the type of car that you drive can affect your car insurance premiums. For example, if you drive a sports car and this attracts a higher premium due to the possibility that you may damage the car or even cause an accident, you may wish to reconsider your coverage. While sports cars are generally less safe than other cars, if you live in an area where a car chases after you may find yourself paying hundreds of rand every year for damages you caused or injuries you sustain. Cancel your car insurance and avoid this added expense.