Cancelling Car Insurance. Here's what happens after.

I assumed the risk of cancelling my car insurance to test out how much my insurance will go up by. I wanted to check out the process and out some valuable information regarding registration with the DMV in California.

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[vermork]

You should have switch your insurance from “on road” to “storage”.
That’s what I did. This way, you stay insured for damages, fire and theft at 1/10 of the original cost.

[wade]

People need to start a political movement to break the unrealistic extortion practice of insurance companies.

[junzilla]

Previous video: I gotta stop being cheap

This video: I canceled my insurance

Next video: I sold my home and now living in my car which doesn't have insurance.

[christiansoldier]

This is why car insurance mandates should be abolished . Its nothing but a scam

[financialfox]

Insurance feels like your paying into nothing until something happens!

[sheasander]

Since I am a licensed insurance agent in the state of California - I can vouch for this.

1. When you cancel any insurance that requires you to register with the DMV, the insurance company is required by state laws to report that cancelation. Even if you switch companies. There's no getting around it. It's checks and balance in states with mandatory liability insurance.

2. When you cancel your insurance and there's a lien on the we also inform your bank/finance company. Your bank/finance company can choose to give you x number of days to get new coverage.... or they just "force insurance" on you. This is never the best situation for anyone consumer, as forced insurance only protects the bank/lien holder.

3. If you are trying to "save" on auto/home/boat / etc insurance...just raise your deductibles higher. People with higher deductibles always get better rates...without sacrificing coverage and options. The lower the deductible, the higher premium. How often are you planning to use your insurance?

4. If you register the vehicle/boat/scooter/etc...as "non-operative" you don't need insurance. That's how you really avoid the DMV piercing eyes.

Earl

[dvran]

Before you do this, please check if it affects a multiline policy. Sometimes if you cancel car insurance, it can increase your home insurance. I’d rather just raise the deductible to save money

[turduckengaming]

When you take insurance off a vehicle, you're supposed to put the vehicle as Non Operation(can be done via phone or electronic) with the DMV if you just plan to keep it and not sell or junk it. Otherwise the DMV fines you. You won't have any sort of fees if you reinstate the vehicle months later if you are still in the same registration period.

[geekworthy]

One thing I know about all the insurance types, when you have you don't need it and when you don't have it you do need it. Best to find something reasonable and have peace of mind. Peace of mind is priceless.

[ThePeterDislikeShow]

I've always wondered about this! Before the pandemic I used to routinely spend 1-1.5 months overseas! I'd check out of my apartment but hate how my bills especially car insurance and any parking fees continue to run back home. Next up, how do you rent out your car for a month or two while away.

[morganstubie]

I love this video and your attitude. I wanted to watch this video to find out how to cancel my insurance for a year to go abroad again, but wow, you gave me so much more information than I imagined!

[nunyabiznez]

When I lived in Rhode Island my insurance premium with progressive for my used Nissan Quest was $37 / month. Then I moved to Florida and when I got my registration switched it was $129/ month. At the time I was 55 years old and never had an accident, had a perfect driving record and drove an average of less than 2000 miles per year living close to work in both cases. My income dropped dramatically and for the first time in my life I was late with a payment on my insurance. I was 6 days late. When I went to pay I discovered they had A) canceled my insurance for "non payment" and B) informed me that to get reinstated I would have to agree to pay $189 a month. My annual bill was now more than my vehicle was worth and I had a stripped down plan with a $1500 deductible also exceeding the value of my vehicle. In Florida if your insurance is canceled you have 30 days to turn in your plates and cancel your registration or they suspend your license. So I needed the car and agreed to pay. But then I lost my new job because the business was bought out by someone who intended to shut it down to eliminate their competition. Thus making it impossible to pay on time. I called them and said I would be a few days late with my payment due to a job loss. They told me that if I was late my rate would go up to $269 a month. I didn't have the money and $269 was more than I could pay so I canceled my insurance and sold the car, canceled the registration and turned in the plates. I then got a bill for the balance of the payments (six month plan) and at a new rate of $342 a month x the 5 months balance coming to $1710. Two years later I got a much better job that paid a lot more. I researched and just to see what my insurance would be I applied for insurance with them again using my old car's vin number just to get a quote and the quote was $473 a month. I called the company to find out why so much and they said it was due to my canceling my insurance. I told them I had sold the car and they said I should have stayed with them for my new vehicle. I explained that I didn't have a vehicle and had not for two years and they informed me that was a big mistake and then they informed me that I could not be their customer because I had racked up too many "points" whatever that means. So I called around and all the other insurance companies informed me that the reason they also had to charge me so much was due to the "points" I racked up with progressive. I don't know what the "points" are for since I have a perfect driving record. To my knowledge "points" are for moving violations which I have never had in the now 45 years I have been driving. I think these kind of policies are why A) I am the only person on my street with a driver's license and B) there are no car owners on my street. I am a safe driver so I should get good rates but the policy is if you don't pay on time your rate almost doubles and if you cancel you are penalized. My most recent quote was for $712 a month. Here in Florida the longer you go after canceling your insurance the higher your potential rates skyrocket to. I asked what happens if I got 10 years without owning a car they told me my rate would be in the five figures but didn't give me details. So I rent vehicles periodically as needed and buy the one day insurance for $10 which has a $500 deductible and I use a 49cc motor scooter which does not need insurance. When I spoke to our state rep about this they told me that car ownership was reserved for wealthy people and tourists. They didn't word it that way of course. They used politician rhetoric but it amounted to the same. obviously I'm not wealthy people. The highest rate I ever paid in Rhode island was $59 a month and I had two vehicles.

[ThePeterDislikeShow]

Isn't there a storage insurance that only has comprehensive?

[morthim]

"i cancled my scooter insurance" i didn't know that was a thing.

[MUk]

Love your stuff bro. Great insight that most overlook

[sabeehhassan]

If i check insurance of car again n again will it go up. If yes then when would it come down

[originsvr]

Did your car insurance go up $10 per month after re-instating? Or did it only go up $10 for a 6 month period?

[RothReview]

this seems like a lot of hassle and opens you up to random liability issues (car stolen, fire). What happens if you need to use the car in an emergency?

[techboomie]

I cancelled my insurance too. Why pay for something that I am not going to use. This lockdown is going to last til next year.

[freddyfrenzy]

Any advice on how to get a cheaper insurance for a financed 2018 honda civic that has full coverage with geico?