Cancel Auto Insurance Properly to Avoid Legal, Financial Woes
More and more Americans are making the decision to drop their auto insurance policy. It may be due to high costs, no longer owning a car, moving to another area and needing a more local carrier, or simply preferring another company. No matter what the reason is for cancellation, you need to know how to do it properly, or it may end up costing you.
There is a proper way to cancel your auto insurance policy. And stopping your premium payments is not the way to do it, according to a recently released article on InsuranceAgents.com, “How-To Guide: Cancelling Your Auto Insurance Policy.”
“Simply ceasing payment on your auto insurance policy and not contacting your insurance company will cause your carrier to take it upon themselves to cancel your policy,” according to the InsuranceAgents.com article. “Downside? The failure to pay your policy’s premiums on time will go on your credit report. And it’ll make it harder for you to find another carrier to insure you.”
Policyholders are recommended to first, contact their insurer by calling their agent or company’s customer service to cancel the policy, possibly needing to fill out a cancellation-request form.
Second, the policyholder should try to comply with the cancellation procedure of their carrier.
“Each insurance company will handle policy cancellations their own way. Ask your agent what their cancellation procedure is,” suggests the InsuranceAgents.com article. “The quickest way for you to be done with your auto insurance policy and your carrier is to follow your carrier’s established cancellation protocol.”
After you’ve complied with their established process, then ask you’re agent if you are entitled to a refund. If you paid your annual premium at once and up front, and are cancelling before the year is up, you should have a refund coming your way. If you are cancelling because you are seeking another carrier, then you need to line up a new policy.
“[D]o not drive your car on the road until you obtain the new policy. It is illegal in most states to drive a car without auto insurance,” suggests the InsuranceAgents.com article.
If the reason you are cancelling your policy is because your budget is stretched thin and you think you can’t afford it, don’t cancel your policy just yet. There may still be a way for you to obtain auto insurance.
InsuranceAgents.com recommends drivers looking for a more affordable policy to get to their computers.
“To find an affordable policy, search online for car insurance quotes. Compare several car insurance quotes to find the best coverage.”
Staff Contribution: Meha Ahmad
Visit InsuranceAgents.com for more information.
- Contact Information
- Tom Lustina
- External SEO Directory
- Contact via E-mail
This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.