CarInsuranceCompanies.com > FAQ > How do I cancel car insurance coverage?
How do I cancel car insurance coverage?
Canceling a car insurance policy is a simple process however you must follow certain steps in order to avoid any lapse in car insurance coverage. There are various reasons why people want to cancel car insurance. Some people are interested switching to another car insurance company while others no longer require coverage because a vehicle was sold or cancelling deceased auto insurance policy. Whatever your reason for wanting to cancel car insurance coverage you need to pay attention to the effective cancellation date.
The most important thing to remember is that car insurance is a mandatory requirement and should you be caught driving without car insurance you are likely to have your driving license suspended, face fines or even be arrested. Getting caught without car insurance is a simple procedure for law enforcement officials – as the moment you cancel your car insurance it is registered on a national data base and the DMV is notified.
Why do you need to cancel your insurance coverage?
Perhaps a parent has passed away and their car is no longer needed, maybe you are deciding to move and sell your current car, perhaps you live in a built up city center and no longer need a car. Many reasons exist for canceling car insurance coverage but the process is much the same regardless of the reason.
You no longer need car insurance for an individual car?
If you no longer need insurance on a particular car, then approach you current car insurance company and ask about the process for canceling a policy. Most companies require a signed letter from the policyholder via fax or mail.The letter will need to include:
The car insurance policy number, the insured person’s name, the car insurance company (if you are dealing with a broker), the date you want the policy canceled and the signatures of the insured or a death certificate. You also need to inform the DMV of the surrounding circumstances for cancellation and may have to turn in the license plates of the vehicle; each state is regulated by different laws. Check online for the specific requirements.
Switching Car Insurance Companies
Many drivers switch car insurance companies based on a wide range of reasons including lower premiums, better customer service and more. This is a fairly simple process as car insurance is an extremely competitive industry and the search for a new policy
can quickly be done from the comfort of your home using car insurance comparison sites like our site.
Once you have found a new provider simply call your current provider and (a) see if they can beat the quote or (b) ask them the appropriate steps for canceling your coverage and if there are any fees involved.
If you are still certain you want to switch car insurance companies then understand the effective date of the new policy and only cancel your existing policy after the new coverage is in effect. Even driving a couple hours without car insurance poses great liability to you and your family.
Can I Cancel Car Insurance Online?
Every provider is different however many car insurance companies do not provide cancellation forms online. Those who do usually offer fairly simple forms that need to be completed and returned in order to cancel your car insurance coverage. Always keep copies of forms for your records.
If you have paid premiums in advance ask for a refund of payments. Make sure that you have confirmed in writing acknowledgment by your insurance company, that your car insurance coverage is canceled.
Can I just stop paying my car insurance premiums?
The worst possible decision is to simply not pay your current car insurance premiums. Without notification, the car insurance company has no idea of your circumstances and until they are notified will simply assume that nothing has changed. Your current car insurance providers will continue to take the premiums currently owed and you will continue to build a debt obligation. As far as the car insurance company is concerned they are still covering you, you just haven’t paid your premiums.
This bad debt has far reaching affects, not only have you built up a debt that was unnecessary but this debt has become bad and the car insurance company may send this debt to a collection agency, severely hurting your credit score. If this happens, it could possibly affect your ability to get future car insurance and the rates you will pay for your car insurance coverage.
Whenever you need to cancel a car insurance policy its imperative to remember that you must contact your (a) car insurance company and (b) always have new coverage in place before the effective cancellation date of your existing policy.
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