Cancel the insurance policy, sometimes there are situations that compel us thirsty cancel the insurance policy. Whatever the reason
you want, or need, to cancel your car insurance policy, there are a few things
you should be aware of first.
In many cases, you can keep your current car insurance
policy and let it roll over year to year. This can be the best option as long
as you have the same car, don’t have any major changes in your life, and are
satisfied with your current auto insurance company.
If you experience a life change or you are unhappy with your
insurance company, however, you may decide to cancel your policy. Before
canceling, it’s important to understand the necessary steps to do it properly.
1. Let the company know when you want to end the policy. Don't
just let the policy end without notifying the insurance company. This is not
only good policy but also gives your insurance agent an opportunity to offer
you a discount or a policy that works for you now.
If you don’t notify your carrier, it will continue to send
bills, and likely follow those up with phone calls or letters. That will
eventually stop, but the insurer could mark the account for non-payment, and
report this to the credit agencies. You could also face higher car insurance
rates in the future.
2. Follow their lead. Insurance companies handle
cancellations differently. Some might ask you to sign a company document, formally
indicating the desire to stop coverage. Others want you to write a letter
stating your intent, or talk to an agent or customer service representative
about it. Carriers have established ways of dealing with this matter that they
can walk you through.
3. Ask for a refund if you have weeks or months left on the
policy. This is especially likely if you are canceling your auto insurance for
an unexpected reason, such as a death in the family. If there is time left on
the policy and you already paid for the entire year, you may be entitled to a
refund.
4. Contact your lien holder. If you’re still making payments
on your car, you are usually obligated to maintain certain coverages such as
comprehensive and collision. Let your lien holder know that you are switching
car insurance policies.
5. Contact your state’s DMV. Depending on where you live, you
might have to inform your state's motor vehicle department about the car
insurance cancellation and the reason for it. You might also have to turn in
the vehicle's license plates and registration tags.
6. Cancel automatic payments. If you’re using electronic
funds transfer, make sure to stop these payments.
All states require you can show proof of financial
responsibility should you get in an accident. Car insurance is the easiest way
to fulfill this requirement.
If you cancel a policy without first putting a new car
insurance policy in place, you can face:
- Fines or penalties for driving uninsured.
- Liability for all of the personal injury and property damages incurred in an accident you cause.
- Higher premiums in the future when you sign up for a new policy.
If you have
insurance lapses on your record, you’ll likely be seen as a high-risk driver
and face higher rates overall.
What to do if you disagree with cancellation charges
The potential cost of cancelling your car insurance early
can be quite significant.
If you think you have been unfairly charged — or if you have
to cancel because of what you think is a mistake on the insurer’s part — you
can complain to the company directly.
Ask for an address for customer services, and write giving
clear details of your case — such as what happened, when, and why you think you
have been charged too much.
Even if fees are laid out in the policy booklet, you may be
able to challenge them.
Keep a record of anyone you speak to, and of the letters you
send. If you use Special Delivery, you’ll have proof they’ve been received.
If the company doesn’t deal with your complaint to your
satisfaction, you can take your case to the Financial Ombudsman Service at no
extra cost.
No comments:
Post a Comment