How To Cancel Car Insurance
By: Alexis Karapiperis | Customer Service Representative at learnandserve.org | Powered by A Plus Insurance
Car Insurance
What is Car Insurance?
Car Insurance is proof that you are financially responsible for any damage or injuries that occurred to the other individual in the event of an accident. This would be known as your liability coverage which is required in every state. Although, each state will vary on the minimum limit you must hold for liability, along with if they require additional coverages such as Uninsured Motorist Coverage or Personal Injury Protection.
When getting auto insurance, you will be able to customize your coverages and coverage limits. You will have many options to choose from amongst the insurance carriers. When speaking with an agent, you will go over these options and coverage limits to ensure you are getting the best rate and coverage for your auto policy.
How to Get Car Insurance for Cheap?
In order to get the cheap car insurance, it is important to shop around multiple places for auto insurance. It is recommended to shop through at least 3 different insurance carriers, however, you can always shop rates with more to make sure you are finding the best rates.
Another way to get inexpensive car insurance is by seeing what discounts you may qualify for when speaking to an agent. Many companies offer various discounts for their clients when insuring with them.
Furthermore, the limits you set on the policy along with the coverage plans can dictate the price point on the policy. For example, if you choose to keep your liability limits at state minimum, then the premium will be cheaper rather than if you raised the limits. Another example would be if the policy has full coverage added on. If you choose a higher deductible limit of $1,000 rather than $500, your premium will be lowered since you are taking on more financial responsibility.
Lastly, getting cheap car insurance will ultimately depend on you, the insured. Since a majority of the factors for car insurance will be based on a few things such as:
| Rating Factors |
|---|
| Age |
| Gender |
| Location (City / State) |
| Driving History / Driving Violations |
| Vehicle Year / Make / Model |
Therefore, if you had previous driving infractions, it will affect your insurance premium. The more major of the violation, such as a DUI, the more increased your premium will be. This is due to insurance carriers viewing you as a higher risk when insuring.
Why Would You Need A Car Insurance Cancellation?
There are a few common reasons as to why an insured may seek car insurance cancellation.
| Switching Insurance Providers | Many people will cancel their current policy with one carrier due to them finding a better rate for their car insurance with another insurance company. |
| Cancelling Coverage that is No Longer Needed | Individuals may intend to cancel another service such a AAA, and will end their coverage in order to save more money. |
| No Longer Have the Vehicle | If the client no longer has a vehicle in their possession, then it may not be necessary to continue paying for insurance. However, if you sold the vehicle and purchased a new one, you would call your insurance company to have them update the vehicle. |
| You are Covered Under Another Individual’s Policy | If you are added onto someone else’s policy with your vehicle and are added as a rated driver, then you would not need to have an additional policy for the vehicle and yourself. |
| Moving States / Country | If you plan to move, you may not need to change your insurance carrier, just the coverages. However, certain insurance companies will not offer coverage in a different state or country. In this circumstance, you would need to shop around for another insurance company. |
How To Cancel Car Insurance
When planning on canceling your auto insurance policy, there are a few ways you are able to do so. The simplest way would be by calling your insurance agent or insurance carrier saying you would like to cancel the policy. In some instances, the phone call is enough to cancel policy or to stop the policy from renewing.
In some cases, the insurance carrier may require the insured to pay a cancellation fee and sign an insurance cancellation form or letter. If you choose to to wait until the end of your policy term and choose not to renew then you may be able to avoid the cancellation fee.
When Planning on Cancelling Your Auto Insurance, You Should:
- Make sure to confirm whether your policy will cancel immediately or if the policy will require a 30 days notice prior to the cancel date to avoid the penalty.
- Get a Confirmation of your policy cancellation after your request has been processed.
- If you prepaid for your auto premium, ask the agent if you can receive a prorated refund or if you may use the prepayment to cover the cancellation fee.
- When discussing cancellation with an agent due to price increase, see if the agent is first able to rerate the policy to see if you are able to get a lower price on the policy.
Steps on How to Cancel Car Insurance:
- Set Up An Appointment With Your Agent – If you work with an independent agent or an insurance brokerage, such as A Plus Insurance, then they will be able to assist you with cancelling your current policy and then can shop other insurance carriers for you to see if another company comes in lower.
- Mail or Fax a Signed Cancellation Request Form – When writing a letter to the insurance carrier, you will need to include your full name, policy number, and the effective date you want the coverage to end, this should be sufficient when initiating a cancellation. However, make sure to confirm if any cancellation fee is required.
- Request Assistance from Your New Insurance Carrier – If you have already taken initiative to switch carriers, you may ask the new insurance company to help with the cancellation process with the previous insurance carrier. They will, however, need your signature, policy number, and effective cancellation date in order to do so.
What To Keep In Mind On How To Cancel Car Insurance With One Carrier and Switch To Another Carrier:
Make sure that you already have your new auto policy started up prior to cancelling your current policy. Although this means you will pay twice for coverage and have two policies at that time, it is only temporary. You may also get a refund for the unused portion of the premium if you paid in full prior to the policy term ending.
Do remember as well, it is illegal to drive a car without insurance and could lead to some major consequences. While, each State may vary for the consequences you may endure, here is a list below of what you could expect if you are caught driving or operating a vehicle while not insured:
| Common Penalties |
|---|
| Fines of up to $5,000 |
| Suspended Drivers License |
| Suspended Vehicle Registration |
| Required SR22 |
| License and Registration Reinstatement Fees |
| Time in Jail |
| Mandatory Community Service |
| Vehicle Impoundment |
Overall Thoughts On Car Insurance Cancellation
If you are finding yourself needing to cancel your auto insurance, it is best to discuss it with your agent and ask for advice on what steps to take. The agent you speak with will be able to guide you in the right direction on cancelling your auto policy.
However, make sure you have another insurance company in which you are insured by if you do plan to operate or drive a vehicle. Sometimes you will be able to find another insurance carrier who has a better rate with the same coverages just by shopping around!
Frequently Asked Questions About Canceling Car Insurance
Q1: Can I cancel my car insurance policy at any time?
A1: In most cases, you can cancel your car insurance policy at any time. However, it’s essential to review your policy terms and check for any cancellation fees or penalties that may apply. It’s also a good practice to have a new insurance policy in place before canceling your current one to avoid gaps in coverage.
Q2: What is the process for canceling car insurance?
A2: To cancel your car insurance policy, you typically need to contact your insurance provider. They will guide you through the cancellation process, which may involve filling out a cancellation request form. Be prepared to provide your policy details and the effective date for cancellation. It’s essential to follow your insurer’s instructions and request written confirmation of the cancellation.
Q3: Will I receive a refund if I cancel my car insurance mid-term?
A3: Whether you receive a refund for canceling your car insurance mid-term depends on your insurance provider and your policy terms. Some insurers may provide a pro-rated refund for the unused portion of your premium, while others may have specific cancellation fees. It’s important to discuss this with your insurer to understand how cancellations are handled.
Additional Links
Last Updated on by Marlon Moss