Everybody wants to get the best deal when it comes to auto insurance. If after doing some research on auto insurance quotes and finding better deals and features than your current policy offers, you may find youself wondering how to cancel auto insurance you currently have.
Reasons for Cancelling Auto Insurance
Other reasons for needing to know how to cancel auto insurance that is currently in place include being covered under someone else’s policy, giving up driving for some other means of transportation, or selling your current vehicle and no longer needing to carry auto insurance on a vehicle that you no longer own or lease.
Review Your Auto Insurance Contract
In reviewing your current auto insurance policy, you will see that you do have the right to cancel your policy at any time, so long as you provide your current insurance carrier with the proper amount of notice they require.
It is usually the most convenient for people to cancel their current insurance when their policy comes up for renewal, although you can cancel at any point during the term of the policy and request that your insurance carrier prorate the unused portion of premiums already paid to them as a refund by check or money order.
Watch for Auto Insurance Cancellation Fees
Some companies will assess a special cancellation fee if you decide to cancel your insurance in the middle of a six or 12 month policy. It’s important to contact your auto insurance company prior to giving a definite cancellation order to see exactly what their policy is and if there are cancellation fees involved. Fees are usually assessed as one way to discourage customers from cancelling their auto insurance prior to the end of the policy’s current length of term.
Keep written records
The proper way to cancel your auto insurance is to inform your current insurance company in writing that you wish to cancel your auto insurance policy, the date you wish the cancellation to take effect and the reason for cancellation. You may be required to show proof that you have contracted for a new policy if you cancel your auto insurance mid-term with your old company. Most isurance companies are required by state law to ensure that you have continuing coverage if that state requires that all automobile drivers carry auto insurance.
Don’t Assume
Even if your current coverage is coming to the end of its term, take the step of cancelling your policy in writing even if you have contracted for new insurance. Some policies roll over and your credit card or bank may be automatically charged for a renewal you don’t want if you can’t prove that you sent a written auto insurance cancellation notice in writing.