If the insurance company cancels your policy, you'll normally get a refund from car insurance, unless they cancel the policy for non-payment. If payment doesn't occur, you won't receive any refund and you'll continue to owe the insurer any unpaid premiums. If you cancel your car insurance before the renewal date, you may be reimbursed for some or all of the unused premium if you paid in advance. Depending on the cancellation used by your insurer, you may receive a full or partial refund.
The easiest way to cancel your car insurance is to call your insurance company or agent. In many cases, a phone call is enough to cancel the policy or stop the renewal of the insurance. However, some insurance companies may require you to pay a cancellation fee and sign an insurance cancellation form or letter. You may be able to avoid paying the cancellation fee if you wait until the end of your policy and choose not to renew it.
You might want to cancel an insurance policy if you just bought it and changed your mind. By law, you have a minimum cooling off period of 14 days during which you can cancel the policy for any reason. If you have taken out life insurance, the cooling off period is 30 days. Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results.
Policyholders can cancel their auto insurance policy by calling their agent, mailing or faxing a signed cancellation request, or requesting assistance from a new company. Most insurance companies won't charge a cancellation fee for canceling an auto insurance policy or specific coverage. The best way to determine if your insurer has specific cancellation guidelines is to contact your insurer or review the fine print on your policy. You can choose to cancel your car insurance policy at any time, regardless of the reason, but it's a good idea to know the charges or the consequences that this could cause.
If you need to cancel your car insurance policy, the Bankrate guide can help you take the necessary steps to do so. You should always check the minimum car insurance requirements in your state before canceling your car insurance. Adjustments to your coverage, such as reducing coverage limits or eliminating special equipment coverage after buying a new car that doesn't have custom parts, can also help reduce overall costs and eliminate the need to cancel car insurance. Whether you're changing car insurance providers or selling a car with plans to stop driving, canceling car insurance is often a simple process.
If you cancel your insurance policy instead of suspending it, your insurance company will likely view this interruption as a lapse in coverage and that your insurance premium will increase. If you change your car insurance company and find better rates with another insurance company, you may want to cancel your current policy before it expires. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. The process can be simple, but you might still want details about the cancellation of your car insurance policy and the best time to do so.