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.
The “Standard Operating Procedure” for most insurer’s is that you can cancel your policy simply by sending written notice with your desired termination date. Keep in mind that your policy may not necessarily stop at the end of your term, it may have an auto-renew clause. You also shouldn’t assume that your policy gets canceled by simply not paying your next premium.
You also shouldn’t expect this to be clear on your policy. Most insurers will be quick to let you know that your coverage terminates at the end of the policy period if you don’t pay your premium, but they aren’t always so quick to let you know of the repercussions you may face for not providing formal notice of your policy termination.
You should also recognize canceling your policy, particularly if done improperly, can impact your chances of getting good auto coverage in the future. Canceling your policy through default may get you labeled as a high-risk applicant. The best way to avoid this trap is to make sure you are 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.
Providing you are considerate about giving proper notice to your old insurance company when you want to cancel your auto policy, and go through the official termination process, you probably won’t have to worry about any potential negative repercussions.
The author is currently researching Infrared Night Vision and other spy gear, and the growing field of Free Genealogy Searches for upcoming articles.
Article Source: Free Articles
Comments on free articles are closed.