When and How to Cancel Your Car Insurance Policy | Bankrate
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- You should have another policy in effect before canceling your existing coverage to avoid your future car insurance premiums increasing substantially due to a lapse in coverage.
- If you are recuperating from surgery or embarking on a long vacation, you may want to suspend your car insurance for a time instead of canceling. Canceling your car insurance and restarting it later could be perceived as a lapse in coverage.
- When you move, it helps to contact your insurance provider immediately to ensure that your policy aligns with the car insurance laws in your new locality or state.
How to cancel your car insurance
Google “ how to cancel insurance policy ” or “ how do I cancel your car insurance, ” and you will get a variety of results. however, the serve is relatively easy. Bankrate ’ s insurance editorial team compiled the pursuit list of best practices :
- Purchase a new policy before canceling: Purchasing a new auto insurance policy before canceling your existing policy will protect you from experiencing a lapse in coverage. A lapse in coverage could cause your insurance rates to increase, since driving without insurance is illegal in most states.
- Contact your insurance provider: To cancel your existing insurance policy, you may call your insurer, contact an agent through the company’s mobile app, mail in a cancelation request or speak to an agent in person — depending on your carrier’s options.
- Ask to speak with an agent about cancelation: Each provider will likely have different requirements for canceling a policy. For example, some providers may require you to pay a cancelation fee or give a 30-day notice ahead of your cancelation date. It may be beneficial to speak directly with an agent to be clear on what steps are required.
- You may be required to sign a cancelation letter: Cancelation letters are not as commonplace as they once were due to the convenience of email and online forms; however, some auto insurers may still ask that you send a letter requesting your coverage to end. The letter typically includes your policy number, name and date you want your policy canceled. If you paid for your policy upfront and have remaining months of coverage, you may also choose to include a refund request for the unused portion of your policy.
- Once finalized, request a policy cancelation notice from your auto insurer: Carriers will generally send a notice confirming that your policy has officially been canceled. If you do not receive a notice, you may ask that your insurer provide one to ensure you have a written record of the transaction.
When you should cancel your car insurance
You may need to cancel your car policy for respective purposes, but it is important to consider your plan for being without coverage advance. For drivers making a carrier switch, purchasing a new policy ahead of your current one ’ mho termination is a good practice. If you are making a permanent wave cancelation, consider talking through your situation with an policy agent to ensure that missing coverage will not put you at legal or fiscal gamble .
When you move
If you move to another department of state where your stream insurance company does not offer coverage, you will need to get a policy from an car insurance company that offers coverage at your new placement. arrange for the fresh policy a few weeks in progress to avoid a oversight in coverage .
When you do not have a car
When you sell a vehicle with no plans to replace it, you can cancel your car insurance. however, it is normally a adept estimate to hold off on discontinuing coverage until the new owner takes monomania and the title has been transferred.
When you want a better deal
You may decide to switch your car insurance supplier to get a better rate. Again, it is normally a good mind to switch to a new policy before dropping your current coverage. The end of a policy term is typically the best prison term to switch insurers. You should start shopping for a new policy company at least six to eight weeks before the end of the policy term, so you have ample time to secure new coverage .
When you want to reduce coverage
If you have an older vehicle you own outright, you might consider dropping optional collision and comprehensive examination coverages. Consider the risks before dropping any coverage. It is important to note that if you discontinue collision and comprehensive examination, you will have probably to pay out of pocket if your car is damaged or stolen so you need to be prepared financially .
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When you should not cancel your car insurance
While you can cancel your car policy at any given prison term, you may not always need to. Before canceling your coverage, it may help to think through why you no longer need insurance and create a strategic approach to prevent potential legal or premium-related issues .
When you will be driving
Canceling coverage on a vehicle you still plan to drive may not be the best theme, as it could put you at fiscal hazard and potentially rape department of state laws. Speak with a license indemnity agent to learn more about how drive your vehicle without policy could affect you .
When you move
Moving does not automatically require you to get a newly car policy. Before moving, contact your current car insurance company to find out if you can transfer your coverage to the new state of matter. Moving can cause your rate to change because location is a factor in determining premiums. If your stream insurance company operates local agencies, you might need to choose a newly agent vitamin a well .
When you have life changes
You might want to keep your car policy policy when you get married or divorced. You can add a newly spouse to your current car policy and sometimes flush earn a rebate for tying the knot. You may besides qualify for a multi-policy discount if you and your new spouse have policy with the same company. If you get divorced, you can typically remove your ex ’ s diagnose from your stream policy rather of canceling the policy all in all .
When you are only temporarily not driving
If you take a break from driving for an extended menstruation, some car indemnity companies will allow you to suspend your cable car indemnity coverage. however, make certain to check state requirements. In some states, you will have to send a written request for suspension, while in others you can simply call your agent. If you cancel your insurance policy instead of suspending it, your insurance company will likely view this break as a lapse in coverage and your insurance premium may increase.
When your premium is high
A high premium does not inevitably mean you need to cancel your coverage. Most car insurers offer several types of discounts. You may qualify for a discount for driving safely, taking a virtual drive course or reporting your car ’ sulfur condom features, such as airbags or anti-lock brakes. Contact your agentive role to find out how discounts can lower your pace .
If I cancel my auto insurance, will I get a refund?
If you paid your premium in advance and cancel your policy before the end of the term, the insurance company must refund the remaining balance in most cases. Most car insurers will prorate your refund based on the act of days your current policy was in effect. The indemnity diligence is highly regulated and each department of state has insurance statutes that govern how companies must handle refunds. In Nebraska, for example, an car insurance company must contact you within 15 commercial enterprise days of cancelation to inform you about any eligible refunds. In many states, like Texas, if you finance your agio through a premium finance company, the indemnity party may return the idle bounty to the finance company, not you. Unless otherwise stated in a codified, car policy companies normally do not have the obligation to refund your money within a given clock time period. Most insurance contracts typically state that the company will issue a refund “ within a reasonable timeframe. ” To avoid refund headaches, it is best to notify your car insurance company of your plans to cancel when it is time to renew your policy. Check with your carrier before canceling to learn what the policy cancelation terms are .
Car insurance cancelation fees
Depending on the auto insurance company, canceling your policy before the end of its term may result in a cancelation fee. State laws can determine if a fee is allowable, and, if then, it is up to the insurance company to set that fee, which is frequently taken out of the prorated refund. If you ask your supplier about cancelation fees, knowing whether your express makes fees permissible could help you prepare in advance for any charges .
What happens if you stop paying your premiums without canceling your car insurance policy
If you want to discontinue your indemnity coverage, you will need to contact your insurance company or your agent. If you stop paying your premiums, but have not canceled your policy, your carrier can continue requesting payment from you throughout your policy’s term. You will be charged for the time your policy was active without payment. Failing to properly notify your car insurance company that you want to cancel coverage may flush impact your experience of finding car coverage in the future. even if you intend on finding a newly car insurance caller, missing payments entirely could lead to poor payment history and make find low-cost rates more unmanageable. similarly, if you have automatic bank account withdrawal enabled to pay your premiums, you may continue to pay for coverage that you do not intend to keep .
Frequently asked questions
Should I cancel my car insurance if I go on an extended vacation?
Because gaps in coverage may negatively impact your future premium rates, foregoing car indemnity — even for an widen vacation — probable is not worth it. If you plan to be away for a calendar month or longer and your vehicle will not be in habit, there may be early ways to save on your premiums without canceling your policy. For exemplify, you might consider removing your optional collision coverage while your car is garaged to reduce your monthly premium.
Do I need to cancel my policy if I move to another state?
When you move, you will need to register your vehicle in your modern state of residency and purchase a policy that aligns with its car indemnity laws. many major indemnity providers operate in all U.S. states and Washington D.C., so you may be able to stay cover under your stream mailman even if you need new coverage. Ask your policy agent if your stream insurance company operates in the state where you plan to move .
Can I cancel some coverages without canceling the entire auto policy?
many drivers choose to drop expensive coverages such as optional comprehensive examination and collision after they pay off their fomite. You may drop non-essential coverages and keep required liability policies .
Do I need to do something specific to cancel if my car insurance company drops my coverage?
If your current car insurance company dropped your coverage, this means the policy is already canceled. While you will not need to take any extra steps to terminate your policy, you will need to find a newly insurance company if you do not already have one to avoid a oversight in coverage .
Category : car insurance questions