When you find your current car insurance policy leaves a lot to be desired, it is time to cancel and opt for a better policy. When going in for auto insurance policy cancellation you may end up paying for fines like late fees, cancellation charges and overlapping dates if you don’t know the correct procedure.
The process to cancel car insurance is easy if you know the correct way to handle it. Once you have paid for the initial premium for the new auto insurance policy, you can start the procedure to cancel the car insurance policy you are currently paying for. Be sure to set proper dates for the old one to terminate and new one to be effective. If the dates overlap you will end up paying for both the policies. And if the dates are far apart you are left vulnerable to financial disaster if your car meets with an accident during that period.
Step 2: Contact Your Current Provider
Inform your current insurance company that you are discontinuing with the policy. Even if the insurance company has not delivered, they will keep on charging you. If you do not pay up, it will show on the credit history. If you have any doubts it is best that you call up the customer care. The customer care executives will not only clear the doubts but they will also help you resolve if you have any issues with the current insurance company. If you have paid for any advance premiums with the insurer, you can also request for a refund. The request is likely to be denied.
Step 3: Settle Claims and Payments
Clear all your claims and settle all payments before the new policy becomes effective. If you are directed by the customer care to sign a letter stating that you are cancelling the old policy, go ahead and sign it. Be sure to inform the state motor agency about the change in auto insurance policy cover. If you have a loan against the vehicle duly inform the loan provider also.
Canceling a car insurance policy is fairly easy, but it’s important to make sure that you don’t have any outstanding claims or payments to worry about.