Can I Reinstate My Auto Insurance Coverage After Cancellation

The question of whether a driver can reinstate an auto insurance policy after canceling the coverage is one that a number of people may be wondering about. Once a policyholder has instructed his or her insurance company to cancel the policy, the insurer will follow the instructions. If the driver’s need change at a later date, the insurance company will need to issue a new policy.

Shopping for Auto Insurance Coverage

Before a driver starts looking for auto insurance coverage, he or she should start by considering what type of protection is needed. The driver will also need to consider how much protection he or she needs. The driver will need to comply with state laws setting out minimum coverage requirements, but a consumer can choose to buy a policy with a higher level of protection if he or she wishes to do so.

Rates charged by insurance providers will vary, and making a point of shopping around for coverage will help an auto insurance buyer find the best prices for the protection he or she needs. Going online is an effective way to shop for car insurance, since prospective buyers can do so from anywhere they can get an Internet connection. They are not restricted to standard business hours when looking for auto insurance coverage.

Types of Auto Insurance Coverage

In most states, liability auto insurance protection is required by law. This type of protection has two components, which are bodily injury and property damage insurance.

Bodily injury liability coverage pays for claims made by the occupants of the other vehicle following an accident. It pays for medical bills, rehabilitation expenses and other costs incurred by accident victims. Claims for lost wages and/or pain and suffering may be made, depending on the state.

Property damage liability coverage pays for the cost to repair the other driver’s car following the accident. If the other driver’s vehicle is totalled, the insurance company will pay out based on its cash value. The property damage coverage also pays for repairs to public property damaged or destroyed in the incident, such as fences, sheds, buildings, guard rails and sign posts.

Uninsured and underinsured motorist coverage is not required in all states, but it is worthwhile to add it to the coverage terms. Uninsured motorist coverage compensates the policyholder and his or her passengers for injuries and damages caused by a driver who doesn’t have auto insurance coverage in place or who cannot be identified, such as when a hit and run accident has occurred. Underinsured motorist protection comes into play when the at-fault driver doesn’t have enough coverage to pay for the damages he or she caused.

Collision and comprehensive insurance are examples of physical damage coverage. Collision coverage pays for repairs to the vehicle following an incident where the car comes into contact with an inanimate object or rolls over. Comprehensive coverage pays out when the damage to the vehicle is caused by other types of events, such as falling objects, severe weather, vandalism, theft or fire.