9 Responses for "Is purchasing car insurance a legal binding contract?"

1. taylor lautner February 4th, 2010 at 2:43 am 1

   Best Answer – Chosen by Voters No, but they can report that they are no longer covering you. You are allowed to cancel insurance at any time for auto coverage as long as you don't drive the car.

2. Vanessa Hudgens February 4th, 2010 at 2:43 am 2

   Yes they can!When will people learn, just because you can't afford it, it suddenly is not your legal obligation after you signed papers???You have two choices, cancel your insurance and take your car off the road, until you can afford it or work anywhere in order to pay your bills.Some states you need to prove to the insurance that you have taken your car off the road before you can cancel.

3. miley cyrus February 4th, 2010 at 2:43 am 3

   No, you can cancel an insurance policy at any time and get a pro rata refund. If you are paying in monthly installments, they end when you cancel the policy. Source(s): I worked for an insurance broker for a while.

4. lady gaga February 4th, 2010 at 2:43 am 4

   Most policies have cancellation clauses allowing you to drop the coverage. Of course, in states where the insurance is mandatory, this also means turning in your tags or face fines.

5. taylor swift February 4th, 2010 at 2:43 am 5

   If you owe them money for insurance given that you didn't pay for, yes. Otherwise, cancel the policy and the company should refund you the difference of what you haven't used.

6. taylor lautner February 4th, 2010 at 2:43 am 6

   Usually you can cancel your insurance and get a refund for the remaining months.Contact the insurance company.

7. taylor lautner February 4th, 2010 at 2:43 am 7

   Yes. The insurance premium was earned at the time they bound the policy. If they allowed you to pay off the insurance over time they were extending you credit.

8. lady gaga February 4th, 2010 at 2:43 am 8

   yes, they can cancel and send the balance to a collection agency. Driving without insurance is beyond stupid and is illegal in most states.

9. taylor swift February 4th, 2010 at 2:43 am 9

   Just cancel the insurance policy. They will refund you the unused months.