Canceling Your Auto Insurance Policy

If you feel you are paying too much for auto insurance every month, you may want to switch companies. In order to do this, you need to first cancel your existing policy. You shouldn’t feel like you have to be loyal to a company if you don’t think they are providing the best service you can get. If you have researched online for cheap auto insurance rates, then you’ve taken a valuable step toward saving money every month.

Here are a few simple steps that you will need to take to cancel your existing auto insurance policy, for whatever reason.

1. Call or email your insurance provider

You should know before you contact your provider when you wish to cancel your policy, and give them this date. Once they know the date of cancelation you can move forward with the other steps. Do not try to let your policy lapse, as your insurance provider will continue billing you during this time, and you will still be considered responsible for these payments. In addition, if you allow your policy to lapse, the insurance provider may contact the DMV and notify them of this lapse. This may result in penalties and further complications for you.

Procedures for canceling a policy vary among different insurance providers; many will want you to sign a form that officially terminates your policy agreement, and others may only require a phone call or letter. If you have a remaining premium, you may still be required to pay for it, although some providers allow you to pay a cancelation fee. You should always read the fine print on your insurance policy contract before canceling.

2. Alert the DMV

After you have canceled your policy with your auto insurance provider, you need to contact the state department of motor vehicles and alert them to this cancelation. You might have to pay a fine if your new insurance policy has not yet taken effect. Check your state’s laws and regulations regarding policy cancelation. If you cancel an old policy and are still in possession of a vehicle, you need to have a new policy in place.

3. Check for Refunds

Sometimes, if you cancel a policy, you can get a refund; other times, you may have to carry out the term on your contract. Always ask your provider if you are eligible for a refund.
With just a few simple steps, you can move from a bad policy to a new one, and that will get you one step closer to cheap car insurance premiums. Even if you have insurance, you should check out our free quote finder. It could lead you to even more savings.