Here’s the Process on How To Cancel A Car Insurance Policy
Just as buying a car insurance policy is an informed decision, cancelling a car insurance policy also needs a carefully planned action. You can cancel your car insurance at any time. All you need to do is submit the replacement papers to the car insurance company.
Cancelling a car insurance policy is an easy process, and usually involves a call to your insurer. But there are a few factors to consider before you ditch your current provider. You can cancel your car insurance at any time by sending an email, over the phone or filling up a cancellation form.
Common Car Insurance Cancellation Reasons
There are several reasons for car insurance cancellation, some of which are mentioned below:
- Sale of old car: If you want to buy a new car, then you should definitely opt for cancellation of old policy and buy a new one.
- Unhappy with the present car insurance company: If you are paying a high amount and receiving less sum assured, then you should opt for a new car insurance company.
- Car gets stolen: If your car gets stolen and you do not have a comprehensive cover, you should cancel your policy.
Car Insurance Policy Cancellation Process
Follow the below-mentioned steps to cancel your car insurance policy:
- Update Car Insurance Company Right away
You should inform the car insurance company right away when you plan to cancel the policy. It would enable the insurance company to start the cancellation process and to take up the official procedure.
- Adhere to the Guidelines of the Insurer
The process differs from insurer to insurer. You will need to sign a declaration or the cancellation documents providing approval for plan cancellation. Companies can do this via phone, e-mail or post from the policyholder. Post this; the policyholder would get a letter of cancellation from the policyholder affirming the amount that is outstanding.
- Enquire for Car Insurance Certificate
As a policyholder you should enquire for car insurance policy papers which you had offered at the time of policy cancellation. This would be required for purchasing a new car and also to get the No Claim Bonus.
- Look for the Refund Status before the Culmination of Policy
Before the policy lapses, it is suggested that the policyholder asks for a repayment from the insurance organization. If the amount has been paid already, the car insurance company is answerable to pay you the money back. Make sure that the money is deposited to the bank account directly.
So, at any moment you need to cancel your auto insurance plan and obtain a new one, then follow the aforementioned process of cancellation. But, make sure that you do your research in regards to the nuances your insurance provider might have to make it a trouble-free experience and to get the most of your earlier policy.
Even though it is quite easy to cancel a car insurance policy, it is suggested that you have a solid reason to do so. You should also be prepared with quotes and plans of the policy you want to apply for. Despite all the problems you are facing with the current insurance company, do not drive without comprehensive car insurance as it is illegal.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.