Life is full of unexpected twists and turns, so despite careful planning and putting a lot of work into finding the best car insurance, sometimes the time comes when you have to cancel your policy. Perhaps the time has come to sell your car and you haven't decided on a new one to replace it yet, maybe you're relocating or someone has passed away so their coverage needs to be halted. Whatever the reason, don't let the task of canceling your auto insurance policy become a hassle. Here I explain all of the steps you need to take to cancel your policy easily and quickly.
1. Contact Your Insurer
Although it may be tempting not to deal with the process of canceling your insurance, allowing it to just run its natural course will cause you unnecessary expenses as your carrier will continue to send bills in the meantime. These are likely to be followed by phone calls and letters, and your insurer may eventually flag the account for non payment, reporting it to the credit agencies and negatively affecting your credit report. Contact your insurer and tell them exactly when you would like to end your coverage – you can do this in a number of ways such as by phone, online or in person at your insurer's office.
2. Follow Instructions
The cancellation procedures for each auto insurer are different, so find out the necessary paperwork you might have to complete to make the cancellation from your provider. For some companies simply signing a pre-made form may be enough, for others you may have to type a letter stating your intentions – if you do write a letter make sure you include all of your policy details. Also remember to cancel any automatic electronic fund transfers you may have set up to pay for your policy.
3. Claim Any Refunds
If there are weeks or months left on the policy make sure you request a refund on your unused premiums – cancelling a policy shouldn't leave you out of pocket. Bear in mind however that these can take around 14 days to process.
4. Alert the DMV
Depending on the state you reside in you may have to inform the state's motor vehicle department of the cancellation and the reason for it. Further potential correspondence with the DMV may include returning the vehicle's license plates and registration tags.
Further Things To Consider
Although you are technically able to cancel your auto insurance policy at any time this may incur fees if you do it straight after you have opened your policy. If you are just changing your insurer then you don't have to go through this process as your new auto insurer can deal with it for you – consult our article on changing your auto insurer for more information, and remember that while you are operating a vehicle auto insurance is always necessary.
Avoid having to cancel your auto insurance policy because of substandard service by making sure you have the best auto insurance policy to begin with! Researching the number of auto insurance policies out there can be tough, that's why we've done it for you! Compare auto insurance in a click to find the top car insurance policy for your needs! Just choose your state in the box below to find the best auto insurance rates.