It is mandatory to always have car insurance if you want to drive your vehicle in the U.S. But in some circumstances you may need to get rid of a car insurance and chances are that you wonder how to cancel car insurance. There are many reasons why you may need to cancel a car insurance.
Why would you cancel car insurance?
You will NOT use your car anymore.
In this case, you also have to declare your vehicle as off-road with a SORN (Statutory Off Road Notification). Your car should be on your garage or any private land meanwhile.
Even if you won’t drive anymore, some people like to conserve a car insurance to protect it from theft, fire and other damage.
You are going to sell your car
If you are selling your car, then you should totally stop paying a car insurance for that vehicle. When selling your vehicle keep in mind you need to send notice of transfer and release of liability too. Otherwise, the buyer can be driving with your insurance, and you may be ending in charge of paying deductibles for someone else incidents.
You got a better car insurance company
Getting a better offer for your car insurance can make you change of company. Switching insurance is a good idea if your company let you cancel for free. If your car insurance coverage is too expensive, you can get a free auto insurance quote with NoDMVLines, an insurance agent will be happy to assist you.
You are moving to another state or abroad
If your actual car insurance doesn’t cover your car in the state you are moving, then you should totally send a cancellation letter to your company.
When can you cancel an Auto insurance?
Can you cancel car insurance at any time? Yes! But before cancel your auto insurance, review the contract with your current insurance. In most of the car insurances companies you can cancel at any time for free.
However, some of them may charge a cancellation fee for early termination. Also, let’s think that you need to cancel car insurance because you want to change of company, then you should avoid lapse in coverage.
A lapse in coverage can be a day or more without insurance, and this can increase your premiums. In the process of switching car insurance companies you should not be driving without insurance. Our advice: first buy the new policy, then cancel your current insurance.
Steps for an Insurance Cancellation
Get in contact with your insurer
You can go to your insurance’s office, call, or you can even contact them online. Tell them why you need to cancel and most likely your current can insurance will make an offer for you to stay.
Ask for cancellation policy details
Some companies may ask you to send a cancellation letter. After signing a cancellation letter, your insurance company will have some days to complete your request.
Wait for a notice of cancellation
To make sure your car insurer cancels was successful you need to receive this notification by mail or fax. If you paid for your policy months up front, you should wait for the refund of the remaining months you didn’t use.
Get already a new insurance, if needed
If you are going to get a new car or just changing your car insurance, remember to get the new one before cancelling.
Things you should NOT do when cancelling a car insurance
Stop paying your premiums
Just stop paying your car insurance is not a way to cancel it. Most insurance policies renew automatically, and you will be charged till you cancel it. Not paying your premiums can also affect your credit score.
Cancel a car insurance but keep driving
If you want to get a ticker or even your license to be revoked or suspended, we do not recommend to drive without a car insurance. In some states you can even receive a prison sentence just for driving uninsured.
Even if you are living, or you plan moving to a state that doesn’t require a car insurance like Virginia or New Hampshire, you should not cancel your car insurance. You may risk more than what you are actually saving.
Knowing when and how to cancel a car insurance correctly can save you a lot of time and money. Remember always investigate and compare many car insurance policies as possible before choosing one. Read the terms and conditions of your policy and make sure to clear all your doubts with your insurance agent.
Not having enough information or not understand how your auto insurance works can lead to many problems. Meanwhile, getting a good and affordable car insurance since the beginning may reduce the possibilities to cancel or change of car insurance.