Top 3 Mistakes To Avoid When Canceling Your Auto Insurance Policy

Insurance Blog

Wanting to engage another insurance carrier and moving to a different state are some reasons why you may wish to cancel your auto insurance policy. Whatever your reasons, the policy cancellation process is quite straightforward and should run seamlessly if you do it right.

Unfortunately, there are several mistakes you may end up making when canceling your automobile policy. Here is a highlight of the most common ones you should avoid as you plan to move forward with your cancellation plans.

1. Not Checking the Cancellation Process 

For some insurers, communication via email or over the telephone is enough to initiate and effect the cancellation of your auto insurance policy. Other companies may require your signature, so you'd need to do an in-person visit or send over the paperwork. Again, the policy on refunds varies among companies.

Before taking further steps, inquire about the proper procedure for canceling your policy. Ask all the right questions to ensure you get it right and don't miss any step.

2. Neglecting to Notify Your Current Insurer

You may get so excited about signing up for an auto insurance policy with a different carrier that you forget to actually cancel your current plan. Failure to inform your current car insurer of your intent to cancel will only result in you paying for both plans. Without prior notice, your insurance carrier will renew your current automobile plan, obligating you to pay for it.

3. Allowing a Coverage Lapse Between the Old and New Policies

It is illegal to drive an uninsured vehicle in most states. Unfortunately, this could be the position you find yourself in if you allow a gap between when the old automobile policy ends, and the new one begins.

To avoid this eventuality, ensure you coordinate with your new insurer, so the auto insurance policy takes effect on the day your policy cancellation becomes final or a day or two before that day. If you do make this mistake, avoid driving your vehicle during this time when there is a coverage lapse, as you may be fined heavily for it.

Shop Around

Take time to shop around for a new auto insurance policy before canceling what you have. Don't sign up for the first deal that looks even slightly better than your current policy, but instead, explore your options before settling on the right fit. Avoid these common mistakes when canceling your automobile policy, and you can look forward to a smooth transition into coverage under the new policy.

Learn more about managing your auto insurance policy. 


27 December 2022

Auto Insurance:  Even High Risk Drivers Need It

About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.