Question

If my vehicle was totaled in an accident, do I still need to pay my insurance bill?

I was involved in an accident where I was considered at-fault. My insurance bill is due next week, but I don't see the point in paying it since I don't have a car. Should I pay it or cancel it?

May 13, 2017 Belfair, WA

Answer
Neil Richardson

May 13, 2017

The decision to maintain your auto insurance coverage is really dependent on whether or not you plan to buy a new vehicle in the near future. If you cancel your policy and then buy another vehicle within the next month or two, the insurance rates for that vehicle will be much higher than if you maintained coverage. Most insurance companies offer a discount for being continuously insured and you will lose that discount if you cancel your policy and need another in a short time frame. If you plan to be without a vehicle for 6 months or longer then it might make sense to cancel your policy. Keep in mind that, if you choose to cancel your policy, you won't be paying insurance premiums but will also be faced with higher rates when you need to be insured again.

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