If you just sold a car, move to another state or found a better deal you would be asking; can I cancel my automobile insurance? The answer is yes and many policyholders stop early because either they don’t need or cannot use it any more or they like to switch to better alternatives. If you still have fair amount of time left on a policy and don’t want to wait until the renewal you can find out below how to end it without losing money in the process.
Reasons for Cancelling Auto Insurance Early
No Car to Cover anymore: If you have sold your automobile and have no plans to buy another one anytime soon you wouldn’t want to spend any more money on it. You don’t need to worry about it even if you have already paid the premium in full because you will receive refunds for the time remaining on the policy. It is not a problem at all and they are quick to return it straight back into a bank account provided.
Moving out of State: Underwriters have to follow state laws when they issue policies. Therefore, you need to replace the old one with the new when moving into a different state. The current coverage may be valid for a short period to allow people make necessary arrangements. If the policy doesn’t expire before this period you will have to stop current vehicle insurance mid-term and buy a new one that complies with the rules of the new jurisdiction.
Switching Auto Insurance Companies: This is a practice that can save money. It can be triggered by a change in circumstances or just out of curiosity. Many motorists get disappointed by something a current carrier has done and look into changing for the better. Usually, they are pretty loyal but they can only put up with unsatisfactory services or expensive prices so long.
Why Policyholders Switch to Other Car Insurers
Thousands of people make this decision every day for various reasons. You do not have to be unsatisfied to go with another provider. Actually, the renewal dates are set to allow time for motorists to shop around. And companies can recalculate premiums based on the latest information and claim history. Both sides are equally free to change their mind about the contract. But you don’t have to wait until renewal to end automobile insurance. Here are some of the reasons why people do switch halfway into their policies.
- Dissatisfaction with the service received is the main reason for changing providers. Sometimes we feel that we made a mistake and we aren’t going to get what we want if we stay. When you have such feeling the best is to do something about it as early as possible.
- One of the main reasons for aborting car insurance halfway is change in circumstances. You may feel you have to find a better deal when you replace the car, add a new, especially young driver or move. If the premium increased substantially after you notified them it would mean that they don’t like the changes. Then, it may be time to look somewhere else and there is no need to wait until renewal.
- It becomes a no brainer when a more reputable name offers better coverage and cheaper price. At times, people may feel ungrateful towards a current supplier when they have to replace them. But often they are the ones to be blamed.
How to Cancel Vehicle Insurance Early: Important Points
- Make Sure You Don’t Drive: First of all, you have got to make sure that you are never out of cover. The new policy must be in place before you end the old one and definitely before you get behind the wheel again. It was only a short drive to the shops is not an acceptable excuse to anyone. You will pick the bills for all the losses suffered for this little oversight. This is a very important point to get it right in this process. If you stop it because you are taking the vehicle off the road, make sure you get it covered again before you drive next time.
- Contact the Insurer to Cancel: The old account should be closed properly. Many people may think that they will end it automatically if the payment is not received or not renew without it. These statements may be true for most cases. However, it is not hard to give them a call and make sure that they know you are leaving and when. They may expect to receive money if you don’t notify them in a timely manner. Also, they can notify credit agencies for non-payment.
- There Is No Point in Cancelling Auto Insurance after a Claim: Motorists should think twice before switching companies right in the middle of a claim. When it is being processed it may be best to stay put until it is finalized to avoid complicating things. It is usually fine to leave at renewals even though you placed a claim (or a third party did against you). But it would be awkward to terminate a valid policy so that you can go somewhere else. And you don’t probably get any refunds for the premiums already paid and you are still liable to pay the rest if you are on an installment plan. Simply, you are liable to pay the full premium once you make a claim. Technically, it is due at the start. But carriers allow installments or cancellations to serve their customers better and it has become common practice. However, they do expect you to pay the full premium if you expect them to pay a claim.
- Contact Your Lender: If you are swapping carriers you should let the lien-holder know if there is a loan on the vehicle. They will probably be informed of the early termination and may take drastic measures like force buying insurance for the car and sending you the bill, if you don’t let them know.
- Contact DMV: If you sold the car you will follow the procedure to inform the sale to DMV and this should be enough. If you are taking the vehicle off the road and storing it somewhere you need to fill “off road declaration”. If you have already bought another policy DMV will probably pick up on that.
In order to avoid keep having to move again you can do a few things. First of all you should shop around to discover all the options. Getting one quote and being excited about it is not the right thing to do. Get all the facts together, make a few calculations, sleep on it if you have time and switch with the knowledge that you did the right thing. Nobody is chasing you to arrange a new coverage fast.