For starters, you don't want to go a single day without car insurance protection. Not only may driving without auto insurance put you in conflict with your state's laws, but also it could result in a financial disaster if you cause an accident.

This applies even to those who don't drive their cars much, and figure they won't leave the house until their new insurance policy kicks in. After all, they wouldn't be driving without car insurance, even though there would be an insurance lapse.

However, many states require insurers to notify them whenever a customer cancels a car insurance policy. Your DMV may suspect you're driving without insurance, and you'll be required to prove to them that you have insurance.

Also, another car insurance company may hesitate to offer you coverage – or perhaps decide to place you into a higher-risk category – if it notices you cancelled your auto insurance policy.

Additionally, your auto insurer may be forced by your state's laws to confirm you have new coverage when you notify your provider about your cancel insurance intentions. If you don't, they'll have to inform your state's DMV.

Cancel Your Current Car Insurance

Make sure you notify your current provider that you will no longer be their customer. Doing so can avoid getting bills and phone calls from them. They might also notify the credit unions about your non-payments.

Insurance companies handle cancellation requests in different manners. Some allow you to just call with your request, while others may want you to sign a document or send a letter. You should receive an official cancellation notice from your old insurer once they receive word from you.

Shopping for a New Auto Insurance Policy

To get exactly the coverage you need at an affordable rate, be sure to shop around and get several car insurance quotes before you buy your new auto insurance policy.