It’s pretty easy to cancel your auto insurance. For the most part you can cancel your policy at any time. Before you do so you’re going to want to know how to do it correctly. In this article we will discuss the best way to cancel your car insurance policy.
Overall canceling your auto insurance policy is going to be an extremely easy process. A lot of times you can complete this task by a simple call to your auto insurance company. Please keep a few factors in mind before making that call. When you’re in the process of canceling your auto insurance policy please make sure you have a new car insurance policy already in place. This will prevent a gap in auto insurance coverage.
If the reason you’re cancelling your car insurance is due to you no longer owning a vehicle, please make sure you have auto insurance coverage all the way to the date you sign over title to the new owner. Avoiding a lapse in coverage can save you money with your next auto insurance policy.
If you paid your premiums in advance, you will receive a refund of the amount of time you didn’t use. Depending on the car insurance company you’re insured through you may encounter fees for cancelling early. If you have questions as to which auto insurance companies have fees for cancelling, ask one of our amazing agents. [click here to call an agent now]
How exactly do I cancel my auto insurance?
To show you how easy it is to cancel your auto insurance policy, we broke it down in 3 easy steps for you to follow. The majority of insured drivers will take these steps to cancel an auto insurance policy;
Step 1; Call the auto insurance company
The number for your insurance company should be pretty easy locate. Check your insurance card and if you can’t find your card Google your insurance companies name ‘xyz insurance + phone number’. If you can’t find it this way you can always reach out to your insurance agent and they should be able to get the number to you right away.
Step 2; Inquire with the insurance company about the cancellation steps and process
Auto insurance policies come with a lot of small print and rules and regulations. You’re going to want to know what the process exactly is before executing the cancellation process of your car insurance policy. You are going to want to know if your auto insurance company has certain requirements when canceling an auto insurance policy.
Are there cancellation fees for cancelling my auto insurance policy early? A lot of auto insurance companies do not have cancellation fees in place. Some auto insurance companies do have a cancellation fee which is sometimes called a “short rate” fee. Usually this is around 10% of the remaining premium amount is left over. For example if you paid for 12 months on your policy and cancel your auto insurance after 6 months, you will pay 10% of the remaining 6 months on the auto insurance policy.
Step 3; Draw up a cancellation letter if this is a requirement of your auto insurance company.
There are some auto insurance companies that require you send in a cancellation letter. It’s a finalization of your contract with that particular car insurance company. Always make sure if you need any specific language within the letter (find this out in step 2). Ask if it needs to be notarized or certified before sending as well.
Some auto insurance companies do not make a cancellation letter a requirement. So, please in your initial discussion with your car insurance company make sure to ask whether or not this is a requirement. To prevent a lapse in coverage make sure the date your current auto insurance policy ends, the new car insurance policy begins.
Step 4; You receive a notice of auto insurance policy cancellation
There are auto insurance companies that will allow you to cancel your car insurance policy that same day. Then there are other car insurance companies that will ask for 30 days advance notice. You should find this information out within the initial discussion about the policy in step 2.
The notice of cancellation signifies that your auto insurance policy is officially cancelled. At this time you should receive your refund for any pre paid auto insurance premiums. Minus any fees that may be associated with the cancellation.
What would happen if I decided to stop paying my auto insurance payments?
Not exactly the best idea. If you decide you’re just going to stop paying on your auto insurance premiums, your car insurance policy will get cancelled. This is not a recommended way to cancel your auto insurance policy.
If you do not notify your auto insurance company of your intent to cancel, they will be under the impression that you are just late on your premium payment. In turn this will have the insurance company request payments all the way up to the grace period. Typically around 3-4 weeks.
If you chose an auto insurance policy that does not automatically renew at the end of the term, and decide to stop making your auto insurance payments at the end of the term, you would be able to stop paying without penalty.
Is it possible to cancel my auto insurance coverage at any time?
Yes, you can cancel your auto insurance policy whenever you want. You will want to go through the process correctly with the steps above. Please keep in mind, if you just flat out stop paying your auto insurance premium there is a possibility you will be charged through the grace period of your policy.
When you cancel your policy always make sure you have your new auto insurance policy already in place. Preventing a lapse in coverage can save you money on your next auto insurance policy. In addition to a lapse in coverage, if you’re caught driving without car insurance can face severe penalties and fines. On top of that, if you’re involved in an accident and do not have auto insurance coverage you will be required to pay for any repairs out of pocket.
When would it be a good idea for me to cancel my auto insurance policy?
It’s a good idea to cancel your auto insurance policy when you’re getting rid of your vehicle or you found better coverage and are switching auto insurance companies.
There are situations where an auto insurance policy is necessary even if you don’t currently own a personal vehicle. For example you may rent car often or barrow a friends vehicle to get around occasionally. For situations like this it is a good idea to look into a non-owner car insurance policy.
When would it be a bad idea to cancel my auto insurance policy?
If you own a person automobile and drive it often, it is always a bad idea to cancel your auto insurance policy. Even if you think you don’t need it. It’s the law that you carry auto insurance and getting caught driving without it comes with very serious consequences.
I’m moving to a state that doesn’t require auto insurance
There are 2 states in the US that do not require auto insurance. Those states are Virginia and New Hampshire. If you’re moving to one of these states it may cross your mind that it would be a good idea to discontinue whatever auto insurance coverage you may have in place.
But, you may want to reconsider this thought process. If you are involved in an accident you will be required to pay for medical expenses and auto repair bills out of pocket. 9 times out of 10 the auto insurance premium would end up being lower than the actual repair costs and medical bills.
I don’t drive very much and do not think car insurance is important
For the majority of states, it’s the law that you carry auto insurance when you are behind a wheel. Beyond that, car insurance provides financial protection for a very expensive liability. If you do not drive very often you can sometimes receive discounts on your policy for limited millage within the policy timeframe.
Before cancelling your auto insurance policy, look into the options you have available to you. If you have questions you need answered now and are in California, please reach out to one of our wonderful agents. They can answer all of your auto insurance questions and point you in the direction of better car insurance coverage.
My vehicle is in storage so I don’t think I should carry an auto insurance policy anymore
If you’ve been deployed for the military or are away for a long period of time, you may think it’s a good idea to cancel your auto insurance policy. We would suggest you keep your car insurance policy in place. If your vehicle is registered, it’s a requirement you carry a policy even you are not driving currently.
Another reason it would be a good idea to keep your auto insurance policy in place is to provide protection from severe weather, fire, damage, falling trees etc. You may want to consider going with comprehensive coverage to save a little money, instead of completely cancelling your auto insurance policy.
Wrapping up; one of the main reasons to keep constant auto insurance coverage is to prevent any lapse in coverage. When auto insurance companies detect a gap in coverage there is a good chance they will change you a higher rate. In addition to that the financial protect that auto insurance provides is critical with the escalating costs of vehicles and medial expenses.
If you are looking for the best auto insurance in Sacramento, you should reach out to the agents at Eugene C Yates Insurance Agency. They would love to help you answer all your questions regarding your new auto insurance policy. [click here to call an agent now]