Final answer:
The incorrect statement regarding the cancellation of an auto policy in Arizona after 60 days is that the insurer cannot cancel for nonpayment of premium. Insurers can cancel a policy for nonpayment, fraudulent means, or if a driver's license is suspended. Insurance rates vary based on various factors including vehicle safety, driving history, and the driver's age.
Step-by-step explanation:
The question deals with the circumstances under which an auto policy can be cancelled or not renewed in Arizona after it has been in effect for 60 days or more. The statement that is false is:
- The insurer cannot cancel for nonpayment of premium.
This statement is false because if the policyholder fails to pay the premium, the insurer indeed has the right to cancel the policy. Other reasons an insurer can cancel a policy may include if the insurance was obtained through fraudulent means or if the licensed driver of the vehicle has their driver’s license suspended.
Understanding the terms of your auto insurance is crucial as it is an additional expense that does not disappear even after a vehicle has been fully paid off. When determining insurance rates, factors such as the vehicle's safety rating, driving history, and the vehicle's history (if used) are taken into account, and age can also play a role in how much one pays, with younger individuals paying higher rates due to less driving experience.