What happens when you cancel your plates regarding AAIA insurance coverage?

When you cancel your plates, the auto insurance coverage under the AAIA policy is void immediately. This means that as soon as the plates are canceled, the insurance policy associated with those plates ceases to be valid. The implications of this are significant for the insured, as they no longer have coverage for any incidents that may occur after the cancellation. This policy structure is designed to ensure that once a vehicle is no longer registered for use on the road, the insurance provider is no longer liable for any related claims, which is a common practice in the insurance industry.