How-To Guide: Canceling Your Auto Insurance Policy
There may come a point in your life when you will have to cancel your auto insurance policy. Whether it’s due to high costs, no longer owning a car, moving to another area (where maybe your carrier doesn’t cover the country or state you’re relocating to), or you prefer another carrier, cancelling your auto insurance policy has to be done correctly. You can cancel at any time, but if it isn’t done properly, you may end up paying for it.
Consequences of not properly canceling your auto insurance policy:Simply ceasing payment on your auto insurance policy and not contacting your insurance company will cause your carrier to take it upon themselves to cancel your policy. Downside? The failure to pay your policy’s premiums on time will go on your credit report. And it’ll make it harder for you to find another carrier to insure you. If you are looking to save money on car insurance, compare up to five quotes right now through our site and see if you can find a lower rate.
- Contact your insurance carrier
Call your insurance agent or company and give them notice that you would like to cancel your policy with them (you may just have to contact your carrier’s customer service center). Your agent will send you a cancellation-request form. Review it, sign it and send it back to your agent. Be sure, when you’ve contacted your carrier, to let them know the date that you would like to cancel your policy.
- Go with the flow
Each insurance company will handle policy cancellations their own way. Ask your agent what their cancellation procedure is. The quickest way for you to be done with your auto insurance policy and your carrier is to follow your carrier’s established cancellation protocol.
- Ask for a refund
If you paid your annual premium at once, up front, and are now choosing to cancel your auto insurance policy before the year is up, you may have a refund coming your way. But your insurance company may not be required to give it back; be sure to ask your insurance agent. If you are entitled to a refund, a check refund will be sent to you in the mail.
- Line up a new policy
If the reason you are cancelling your policy is because you simply want to switch to another carrier, than be sure you have a new auto insurance policy in place before cancelling the old one; otherwise, do not drive your car on the road until you obtain the new policy. It is illegal in most states to drive a car without auto insurance. To find an affordable policy, search online for car insurance quotes. Compare several car insurance quotes to find the best coverage.
- Contact the DMV
Ask your car insurance agent if you are required to contact the DMV to notify them of a change in insurance carriers. Some states require you to do this; if so, you may have to turn in your car’s plates and tags.