Question:

How Do I Cancel My Auto Insurance Policy?

Answer:

There are several different reasons why someone would change their auto insurance policy. The question is, how do you go about the cancellation? If you fail to cancel your policy properly with your insurance company it could cost you and even hurt your credit score.

You can cancel your existing auto insurance policy at any time. However, it must be done appropriately to effectively terminate the policy. You should not presume that your policy will stop at the end of each policy term and that you don’t have to make the payment for the next bill. By failing to make your bill payments, the insurance company will cancel your policy, but they will also put it on your credit report.

By not giving your insurance provider sufficient cancellation notice, you hinder your chances of getting affordable coverage from another company. Other companies can check your insurance as well as your credit history to determine rates. If they see that a cancellation was made on your policy by the insurer, they may charge you higher premiums. Terminating your policy appropriately can avoid this.

You must give proper notification with adequate time for the insurance company to cancel the policy. With most insurance companies, it is preferred that you send a letter stating that you wish to cancel your policy and a date for it to take effect. You can do this over the phone as well. You will receive a cancellation request form to sign and return to the insurer. Be sure to read through it thoroughly.

If the reason for cancelling your policy is to switch to another insurance company, take the necessary actions not to leave yourself uninsured. You will want to coordinate the effective dates so that your new policy begins as soon as your old one ends. The last thing you want is to be driving uninsured if you happen to get in a wreck. You can avoid any negative impacts on your insurance simply by using consideration when cancelling your policy.