How to Cancel A Car Insurance Policy and Receive A Refund?
Published On May 14, 2021, Updated On Oct 19, 2022
This article provides detailed guidelines on cancelling a car insurance policy. Read on to understand the steps on cancelling your car insurance policy and receiving a refund.
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Are you one of those who has purchased a car insurance plan but now want to cancel it for varied reasons? If so, then you must be wondering about the required process. Do not worry, as we are here to tell you all about the process of getting your car insurance policy cancelled and receiving its refund accordingly.
Easy Steps For Cancelling Your Car Insurance Policy
Just like buying a car insurance plan requires you to do certain things, similarly for cancelling the policy, listed below are some of the steps that you must follow. While the process may vary from one insurer to another, however, below-mentioned steps are similar almost for all car insurance companies.
- First and foremost, you need to inform your insurer that you want to get your car insurance policy cancelled. You can either call your insurer or simply write an email to the concerned person. You can also directly visit the official website of the insurer for the cancellation process.
- Followed by this your insurer will get in touch with you and explain the necessary steps. You might have to provide your insurer with a valid reason for getting your car insurance policy cancelled and also submit the relevant documents that are required in the process.
- After submitting the relevant documents, the cancellation process will be initiated. Depending on the insurer, the timeline for cancellation may vary. Once the car insurance plan is cancelled, do not forget to take the certificate of your car insurance policy. With the help of this certificate, your No Claim Bonus remains intact.
Refund Amount After Cancelling Car Insurance Plan
It is your right to get a refund once you have cancelled your car insurance plan. While the refund amount depends on the time you are getting the car insurance plan cancelled. You can claim a refund only if you cancel the policy within the free look period of 15-30 days offered by the insurance company. Following are the events in which you can seek a refund from your car insurer provider:
- In case you get your policy cancelled before its start date, then you might get a complete refund. However, there are many insurance companies that deduct the processing fee.
- On the other hand, if you have paid the annual premium for your car insurance plan, then you are liable to get a refund on a pro-rata basis.
Now, let’s also discuss the possible reasons why a car insurance plan is cancelled.
Reasons For The Cancellation Of A Car Insurance Plan
The reasons for cancelling a car insurance plan vary from one individual to another. So, we have listed some of the common reasons why an individual gets their car insurance plan cancelled:
- Car Is Being Sold: In a situation where you decide to sell your car to someone else, it is vital that you get the existing car insurance plan cancelled and transfer the ownership accordingly.
- Dissatisfaction With The Current Insurer: It may so happen that you are not satisfied with the benefits offered under the current car insurance plan. Or, you are looking for a car insurance plan with affordable premiums. Both of these situations require you to check car insurance plans offered by other car insurance companies and get your existing plan cancelled.
- You Wish To Replace The Car Model: If you are planning to replace your car with a brand new one, then it is better to cancel the existing car insurance plan and look for a new plan.
We hope that you are able to buy an appropriate car insurance policy to avoid the chances where you need to get your car insurance plan cancelled. However, if such a situation arises where it becomes crucial to cancel the car insurance plan, simply follow the above-mentioned steps.
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.