Cancelling Your Auto Insurance Coverage

Cancelling your auto insurance coverage might seem like an extreme thing to do, especially because auto insurance coverage is an absolute must have in the United States, however, there are many legitimate reasons for doing so – you could have found a better deal somewhere else, or you’re no longer driving a vehicle.cancelling your auto insurance

The process isn’t complicated at all – if you know what you’re doing. This article will lay out the steps you must take to ensure a successful cancellation of your auto insurance policy.

  1. Determine if your current auto insurance has early-cancellation charges

There are some auto insurers that dictate that their clients must be aboard with them for a certain number of years before they are allowed to cancel their auto insurance policies. If you cancel early, you might be slapped with extra charges. Wouldn’t that defeat the purpose of you switching to another auto insurer for cost savings?

  1. Determine which auto insurer you’ll like to switch to

Besides the fact that it is mandatory you have auto insurance coverage when you’re driving a vehicle, begin always insured will help you drive premiums down when you switch to your next auto insurer. After cancelling your auto insurance coverage, you’ll find yourself facing higher premiums and deductibles if there is any period where you are not covered by any auto insurance policies. Auto insurers see this as a sign that the client they’re insurer are “high-risk”.

To ensure that you don’t have any gaps between cancelling your auto insurance coverage and the implementation of your new auto insurance, ask your new insurance company about the date which your new coverage kicks in, and plan accordingly.

  1. Inform your current auto insurance provider

After doing the previous 2 steps, you must now contact your auto insurance provider about cancelling your auto insurance coverage. If you have an auto insurance agent assigned to you, contact them, and they should help you do the rest.

If not, give your auto insurance provider a call. Do not leave a voice mail if no one picks up! They will ignore your request to cancel your current auto insurance coverage, because they’re unable to verify who you are.

After the call, you must send an insurance cancellation letter for them to document the cancellation. You current insurance company will advise you on what you must include in the letter.

The below details should be included in your letter:

  1. Your name, and the names of those that are insured under your current auto insurance policy
  2. Your auto insurance’s policy number
  3. The name of your auto insurer
  4. When you wish to cancel your auto insurance (make sure it corresponds to the date your new auto insurance coverage starts!)
  5. Signatures of those insured under your current auto insurance policy.

There might be other steps and procedures that you must go through before they can process your insurance policy cancellation. Consult your individual auto insurance company to know about these procedures.

  1. Getting Refunds

There are a few options to pay your premiums in, and if you’ve paid your premiums in advance for coverage over a certain period of time, it’s a good time to request refunds on these payments. For example, if you’ve paid for a year in advance, and you decide to go ahead with cancelling your auto insurance coverage 1 month into this payment period, you should be able to get at least 11 months’  worth of premium back.

You should contact your auto insurance company for advice on how to get your premiums refunded to you; different insurance companies have different ways of doing this.

  1. Notifying DMV

After cancelling your auto insurance coverage, you must notify DMV about this cancellation. This will allow them to update, in their database, the current auto insurer that you are with. Again, the steps and procedures to go about this vary from state to state; you must consult your state’s DMV, or ask your insurance agent regarding this issue.

Conclusion

Cancelling your auto insurance coverage isn’t that complicated. However, different companies have different ways of doing things – you must contact your auto insurer personally to find out the exact steps to take to cancelling your auto insurance coverage.

Feedback

  Comments: 2


  1. This article doesn’t really mention the biggest downside to cancelling your auto insurance – the cancellation fees!

    Most auto insurance providers have a cancellation policy that includes fees that come with early termination of your policy.

    Most insurance companies have a fee that ranges anywhere from $30 to $50. I know for a fact that 21st century has a $50 cancellation fee (I learned this the hard way)..

Your feedback