When you need to cancel your car insurance coverage, there are steps you must take to ensure the company doesn’t continue to bill you. Part of a good, solid car insurance policy is having clearly defined instructions as to how to cancel your coverage.
There are many reasons why you may want or need to cancel your coverage. Understanding how to do that, will save you time, money, and ensure that your policy isn’t canceled until you are ready.
Before canceling your auto insurance coverage be sure that you have your new auto insurance policy in place already. Enter your zip code in to compare quotes from different companies and find the best car insurance rates!
Reasons to Cancel Car Insurance Coverage
Canceling car insurance coverage isn’t necessarily a negative thing. There are several reasons to cancel a policy. The first reason you may want to cancel your policy is to switch to another policy. It is a good idea to periodically compare you car insurance policy with other companies. About every six months, do some checking to see if you are still getting a good deal and the best coverage for your money. If you find a better policy, you will need to cancel your current policy.
Another reason to cancel a policy is because you aren’t happy with your current company. If your current company doesn’t handle a claim properly, won’t give you a discount you think you are entitled to, or changes your rate for no apparent reason, you may want to cancel your policy and find one with another company. There is no reason to stick with a company that you aren’t happy with especially when switching companies is so easy.
You may want to cancel your policy because your driving or living situation has changed. If you will not longer be driving, you won’t need a policy anymore. If you get married and will be joining another policy, you will need to cancel your current policy. If you move to another state, your will need to cancel your policy, if your current company doesn’t have coverage in that state. Any of these changes in your life situation can lead to a cancellation of your policy.
Another reason you may need to cancel a policy is because you have received a ticket or a violation on your license. This can be due to too many accidents, speeding tickets, or receiving a DUI. Many times the state will notify your insurance company if you are no longer able to carry a policy, but in some situations, it is your responsibility. Notifying your car insurance company may entitle you to a refund while allowing only the state to notify your company may cause you to forfeit your refund.
How to Cancel a Car Insurance Policy
Canceling a policy is relatively easy. Though it varies somewhat from company to company, most companies allow you to cancel online or over the phone. In order to cancel, you will need your policy number, the date you want cancellation to begin, and the reason you are canceling. Your cancellation can take place that same day or you can set it up to cancel on a date in the near future. Canceling online can be done 24/7 while canceling over the phone may require you to call during certain hours, depending on the company.
Some states require notification of cancellation from the insurance company. This means that when you cancel your policy, the company will inform the Department of Motor Vehicles in your state that you no longer have coverage. You will then have 30 days to get new coverage or to inform the DMV why you no longer carry coverage. If you do not do this, your license can be suspended or revoked. When canceling your policy be sure to find out if your state requires this or not.
Once you cancel your car insurance policy, your car insurance company will issue you a refund if necessary. Most companies require that you pay a month in advance so when you cancel your policy you will get a refund. Be sure to have another company ready to start a new policy, if needed. You can set up your new policy to begin the same day you cancel your old policy. This way, you won’t have a lapse in coverage.
Finding a new company can be done online through a rate quote comparison tool. This type of tool allows you to put all your information into one spot and receive different rates and quotes from top companies. These tools are free and run by third parties, so you don’t need to worry about company bias as with company run websites. Once you receive the quotes, you can decide which company is the best fit for your car insurance needs.
Our online comparison tool can save you time and money. If you are canceling one policy and need another, click to start your search now.
