Auto insurance policies financially safeguard drivers if they're involved in a car accident or other incident. A car insurance policy covers both vehicle damage and bodily harm for the policyholder and liability payments for others involved if they're at fault. 

Not all car insurance policies are identical, with differing levels of coverage depending on driving history, plan choice, and locality, all a part of the equation.

Specific options like monetary limits for comprehensive coverage, collision coverage, and deductibles all determine a car insurance premium. 

Wherever you live in the U.S., chances are likely you need to have an insurance policy for your car. Notable exceptions include Florida, Massachusetts, New Hampshire, New Jersey, Texas, and Virginia, where different rules give motorists other options.

Drivers purchase policies with different car insurance companies and pay premiums each month or yearly to maintain coverage. 

Accident forgiveness discounts exist for safe drivers who exhibit responsible driving habits. 

When a driver purchases an auto insurance policy, they receive an insurance card noting its specific terms, usually kept inside the vehicle in case of an accident. Though typically, a card shows proof of insurance, some car insurance companies offer electronic versions. 

With so many hazards and unknowns during everyday driving, it's essential to own a quality vehicle that keeps you safe. When you're in the market for a used car, how can you know you're buying one in excellent condition? Every vehicle sold by Shift passes a 150-point inspection by certified mechanics and comes with a free Carfax report for ultimate transparency. And with best-in-industry service contracts, Shift keeps your vehicle running strong year after year.

Insurance cancelation is a serious step as a vehicle owner, and getting it right ensures you don't experience a coverage gap or be held responsible for additional premiums.

One way to smooth out the policy cancellation process is gathering all the necessary information before moving forward. Details required by your current auto insurance company to proceed with canceling your policy can include:

• Driver's license number
• Your name, address, and phone number
• Date of coverage cancellation
• Your date of birth
• Policy number

With that information at hand, it's time to contact your insurance provider to cancel your current policy.

Several methods exist to do that. 

Often required by many insurance carriers, and possibly the fastest way to cancel your car insurance is by placing a phone call to your insurance provider. You can find their phone number on your insurance card or by going online and visiting their website. 

Or if you prefer dealing with someone face to face, visiting a physical location like a local office could be more suitable for your needs. 

If you've already selected a new insurance company, asking them to contact your old one could make things easier. Your new auto insurance company can start the process and help you navigate the particulars. 

Some more traditional insurance providers may ask that you mail or fax a cancellation letter to the company or your local insurance agent. 

It's important to remember you can't simply stop paying your premiums and expect your car insurance to cancel automatically. If you go this route without contacting your insurance company, they may continue invoicing you and report you to major credit bureaus for non-payment, which will ultimately affect your credit score

Buying a used car has the potential to save you thousands of dollars. But where can you go to find not only a quality vehicle but one at a great price? Shift's certified mechanics perform extensive 150-point inspections on every car and have complete vehicle history reports, so you know your used car feels as good as new. And at Shift, you'll get a fair, no-haggle price driven by powerful machine-learning algorithms and tons of data. Shift's website has a large selection of fully inspected cars located across the country that are ready to go. The website is user-friendly, and you'll be able to find various makes and models to suit your needs and budget.

Depending on your carrier, you may need to take additional steps to cancel car insurance.

Some auto insurance companies charge a $50 cancellation fee, while others require a "short rate" fee or roughly 10 percent of your leftover premium for the current policy period. 

While many car insurance companies allow you to cancel at any time, others require a 30-day notice. Canceling your coverage immediately should only be done if you have new coverage in place.

Even with all of the work out of the way, several additional details remain.

You should now receive a cancellation letter in the mail noting the cancellation of your old insurance policy. 

Depending on the insurance company, you could receive a refund for previously paid premiums, except for other mandatory charges. 

Making sure you have a start date for your new provider when you cancel car insurance keeps you protected, without any gaps in coverage. Many states consider lapses in auto insurance illegal and charge fines if it happens. 

If you're paying off a car loan or leasing, it's good to inform your lender that you've canceled your old policy and provide them with your new insurance information. 

When moving to a different state, you'll usually need to provide proof of insurance to register your car. Having your new policy lined up and knowing your new state's unique regulations ensures the registration process goes smoothly. 

When you're ready for a new-to-you vehicle and need to sell your old one, doing it yourself can be a hassle. You have to take pictures, post advertisements, and answer calls from prospective buyers. When selling your car to Shift, there's no need to worry about any of that. All you'll have to do is enter the make, model, year, and mileage on Shift's easy-to-use website, and you'll instantly receive a purchase offer that's valid for seven days. Also, with Shift, there's no need to spend the extra time waxing and washing the car. A little dirt won't affect the quote, and we fully detail the cars ourselves anyway before listing them for sale. You can get a fair offer, better than at the dealership, driven by powerful machine learning algorithms and tons of data.