Do not take car insurance policy rules lightly and simply do not consider getting a new policy before terminating the existing one. In case you are moving to another state or are planning to sell your old car or have simply grown wiser to saving money on your policy or have found a better, cheaper deal that offers far more coverage than your current insurance policy, it is advisable to first cancel your previous policy before you consider getting a new one. Do not think that by ignoring your premium payment you are automatically cancelling your policy. No, this is absolutely a wrong notion as insurance policies do not work in this manner and car insurance companies do not take this as lightly either.
Commonly, you are allowed to end the policy when you want, but you must provide ample notice for the insurers to take action on it. It is therefore essential for you to inform the car insurance company well in advance, which means that it should be much before the time frame of the next premium due date. If you fail to give the company enough notice time, you could end up paying more than the regular premium and you might even get a bad credit record. A bad credit history as you know can create hurdles for future insurance policies and loan applications. Not paying your premium means that you will instantly be charged in advance for the following premium too. If you think you can get away without paying your premium, you might want to think again.
As soon as the due date for your premium payment passes, you will start getting reminders from your insurers and if you still fail to make your payment, they will take severe action against you. The insurance company will without any warning, give you a bad credit report that will hinder all future financial dealings. This is something that you surely do not want. So why take the hassle when you can resolve matters straightforwardly. The car insurance company cannot refuse to cancel your policy provided you do it the right way instead of avoiding making your payments. No one can stop you from cancelling an existing policy and buying a new one that offers you better coverage at a lower rate, but take the right path to it.