How to Cancel Car Insurance

If lone things were indeed slowly. fair because you ’ ve purchased and agreed to a new policy, that does n’t mean you ‘re nontaxable from paying the bill for your other one. Yes, by law, you will technically still be insured, but you ’ ll besides still be creditworthy for the old bill .

If you are done using your current ship’s company, it is a dear govern of thumb to request a cancellation. Letting a policy natural without telling can cause problems ; on the other hand, delete is reasonably simpleton. Learn how to cancel your cable car policy in four easy ways, and learn what happens when a policy is not canceled by rights .

Key Takeaways

• Don’t assume that your old insurance is canceled just because you’ve switched to a new carrier.
• Be sure you inform your old provider—whether by phone, mail, or fax, or in person.
• Your new agent may be able to assist in the transition and help you cancel your old policy, as well.
• If you fail to cancel your old policy, you might continue to pay premiums or even get hit with fees from the state for coverage lapses.

Four Easy Ways to Cancel Your indemnity

1. Call In a request

Calling your agent is probably the fastest way to notify them that you want to cancel. sometimes a phone visit is all it takes, but most of the time a signature is besides required to complete the work .

If you are switching entirely on the footing of a lower price, it could be a good theme to call and speak with your agent. There could be more discounts that can be applied, or possibly your coverage can be changed on your current policy. That might change your thinker about switching companies .

2. mail or Fax a Written Request

Signing a cancellation request seals the conduct when it comes to canceling car policy. It ‘s angstrom slowly as write or typing out the date, your mention, and policy number, and requesting cancellation on the date you are planning on switching carriers. Sign the document and chain mail or fax it to your agent or direct to the insurance mailman .

3. Go in Person

It may seem awkward to go into your agent ‘s function and ask to cancel your policy. Do n’t worry, though ; it happens frequently at all agencies. Every agency loses clients from time to fourth dimension. Unless they are your family member or best supporter, it probably won ’ metric ton hurt their feelings. While your current agent may try to persuade you to stay, a civilized decline should put an end to it. Sign the cancellation form, and you ‘ll be on your room .

4. Ask Your New Insurance Company to Assist

Asking your new insurance agent to cancel your honest-to-god indemnity policy is a bare way to complete your cancellation. It ‘s a great way to avoid any awkwardness with your soon-to-be ex-insurance ship’s company. All your newfangled agent needs are your old policy act, the dates, and for you to sign the cancellation form. then the document can be faxed to your old insurance company .

Can I Cancel My Car Insurance at Any Time ?

The best time to cancel your car insurance is after you have another policy set in plaza. While you can cancel your coverage any meter, there are some cases where you may have to pay a punishment. For exemplify, this is coarse if you cancel within 14 days after getting your new policy .

cancellation fees can vary from a set dollar amount up to a share of your overall premium price. The good news is that fees are normally not charged for a standard cancellation, but policies vary .

lecture to your insurance company about cancellation, and find out whether you ‘ll be charged any penalties or silent owe money on the policy .

If you cancel your indemnity within the grace menstruation, it is probably you will distillery owe money on the policy. A grace time period provides coverage for a certain number of days past your requital due date. It besides allows you extra clock to get your premium paid, but that doesn ’ metric ton mean you can get a free few weeks of coverage fair by switching insurers. The lone way to get out of paying for those days is to provide proof of coverage through another carrier for that time .

Warning

just because you can cancel your car policy at any clock time, that does not mean you should. Going without car indemnity can put you into a bad pool in many states when it comes time to purchase car indemnity again.

Four Pitfalls of Canceling Without telling

It is n’t a dependable idea to cancel your coverage without letting your current carrier know. here are equitable a few of the pitfalls of taking that approach .

1. You ’ ll Have to Pay for the Grace Period

If you do not request a cancellation, and you merely allow your policy to cancel on its own, you are technically “ canceling for evasion. ” Some policies do cancel automatically at refilling without payment ; however, many companies give an automatic rifle grace period.

Grace periods much extend your coverage for 20 days. If your policy is canceled for evasion, you will be billed for the grace time period. If you do not pay or provide proof of another active policy, the insurance company could send your unpaid charge to collections .

2. You ’ ll Leave a Bad impression

Leaving an indemnity ship’s company without giving notice can leave a bad impression. It is a good mind to leave on adept terms, specially if there ‘s a prospect you may want to return at some point. Rates are always changing ; you may want to go back to your old insurance company again one day. To prevent it from feeling awkward in the future, notify your agency of cancellation .

3. Your policy Might Never Get Canceled

If you are signed up for automatic rifle on-line payments, your policy will likely continue unless you request cancellation. The money will continue to be withdrawn from your account, and you will have twin coverage. It may be potential to get your money back if you provide a declaration page proving that you had duplicate coverage .

4. other Consequences

Insurers are required to inform the submit DMV of a sink in coverage. Certain states impose penalties for a elapse. It may not be wise to leave it to luck, tied though you ‘ve obtained new insurance .

At the very least, your state DMV may send you a notice asking you to prove that you have coverage. In a worst-case scenario, your driving privileges could get revoked. then, you ‘d have to pay a fine and fees for getting them reinstated .

There are particular rules if your cable car is a rent vehicle. In that case, you must make sure that your newfangled indemnity lists the lease ship’s company as a loss payee. If you do n’t, the lease party will be notified that there was a lapse in coverage. It could then begin the process to repossess the vehicle .

No topic how you cancel your car insurance, make sure to keep an center on your mail for a confirmation letter. If you cancel mid-term, you could receive a refund. It depends on whether you have any idle bounty .

Be certain to cancel your insurance after you have your new policy set with a newfangled carrier. Canceling your car insurance should be a simple action. Just do n’t put it off or forget about it wholly .

frequently Asked Questions ( FAQs )

When should you cancel your car insurance after selling a cable car ?

You should cancel your car insurance after you ‘ve signed the entitle over and surrendered your plates to the DMV. however, if you ‘re planning on buying another fomite soon, it might make more sense to switch your coverage to non-owner car indemnity until you ‘ve purchased your new vehicle.

How do you switch car policy carriers ?

To switch car insurance carriers, begin by getting quotes for coverage. If you ‘re not at the end of your coverage period, confirm whether there are any penalties for switching coverage with your current carrier. Next, apply for your new coverage before your current coverage expires, so you wo n’t experience a coverage gap. Make sure your fresh policy starts before your current policy ends. ultimately, contact your old indemnity company and notify it that you ‘re ending your coverage.