fe-fi-com

Reducing Auto Insurance Coverage Short-Sighted Frugality

A survey revealed that 1 in 5 drivers are reducing or cancelling auto insurance coverage. Although reducing or cancelling auto insurance coverage is a good way to see immediate financial relief, the NAIC warns that this could be a dangerous move in the long run.
The survey recently released by the National Association of Insurance Commissioners (NAIC) shows that about 16 percent of adult drivers had made serious changes to their auto insurance coverage to cut costs on living expenses.
The problem with this strategy is that many states allow insurers to look at the auto insurance coverage history of prospective policyholders, and if there is a period without auto insurance coverage in one's recent past, the insurer may decide to refuse to take on the driver or assess a higher premium.