Drivers may want to terminate their car insurance for various different reasons. Relocating or moving to a new state might be one reason. Getting rid of a car might be another. Sometimes it's just a case of finding better coverage or lower premiums. Regardless of the reasons, it's important to follow some basic guidelines and do it properly.
Under most conditions, the normal practice with insurance companies is to let you to cancel your policy by sending written notice stating your desired date cancellation. It's important to realize that a policy doesn't necessarily end automatically at the end term, so assuming you are canceling by simply not paying your next bill can be a big mistake.
Make sure to read your policy carefully, since the cancellation terms might not be obvious. While they're pretty quick to tell you that if you don't pay your premiums your coverage will stop, they may not be quite so quick to inform you of the negative repercussions, such as penalty charges that can accrue for not providing formal notice of your policy termination.
You should also keep in mind is that your chances of obtaining auto coverage in the future may be impacted is your car insurance policy is canceled. A policy cancellation in your insurance history may end up getting you labeled as a high-risk applicant. Usually though you can avoid this trap by officially terminating your policy properly and in a timely manner.
Switching your coverage to a different insurance company carries additional considerations. Most people who switch plan to drive their car throughout the process. If this is you, be careful not to allow a lapse in your car insurance coverage. Coordinate your new policy's effective start date on or before the your old policy becomes terminated.
If you go to the trouble and make the effort to notify your old insurance company when you want to cancel your auto policy, and follow their stated termination process, you won't have to worry about any potential negative repercussions.
Under most conditions, the normal practice with insurance companies is to let you to cancel your policy by sending written notice stating your desired date cancellation. It's important to realize that a policy doesn't necessarily end automatically at the end term, so assuming you are canceling by simply not paying your next bill can be a big mistake.
Make sure to read your policy carefully, since the cancellation terms might not be obvious. While they're pretty quick to tell you that if you don't pay your premiums your coverage will stop, they may not be quite so quick to inform you of the negative repercussions, such as penalty charges that can accrue for not providing formal notice of your policy termination.
You should also keep in mind is that your chances of obtaining auto coverage in the future may be impacted is your car insurance policy is canceled. A policy cancellation in your insurance history may end up getting you labeled as a high-risk applicant. Usually though you can avoid this trap by officially terminating your policy properly and in a timely manner.
Switching your coverage to a different insurance company carries additional considerations. Most people who switch plan to drive their car throughout the process. If this is you, be careful not to allow a lapse in your car insurance coverage. Coordinate your new policy's effective start date on or before the your old policy becomes terminated.
If you go to the trouble and make the effort to notify your old insurance company when you want to cancel your auto policy, and follow their stated termination process, you won't have to worry about any potential negative repercussions.
No comments:
Post a Comment