Remove car insurance that affects your credit score?
A car insurance contract is a contract between you and your provider. Typically, you can cancel a policy and have no further obligation to your provider unless you have a delayed premium payment. The cancellation of a policy does not affect your credit, as per the Murray group’s insurance services. However, if you owe premiums and vendors to send your debts to the collection, your credit may be adversely affected.
Other cancellation implications
If you are currently paying your car policy, you may be refunded the unused insurance period after you cancel. The only time you can owe insurance premiums is if you start a policy and insurance company send an invoice to you or if you don’t pay the renewal deadline and cancel the policy after the renewal date ends. When you cancel, it is best to pay any unpaid premiums to avoid any potential negative credit consequences.