5 Things to Consider Before Canceling Your Auto Insurance PolicyInsured by Carver
5 Things to Consider Before Canceling Your Auto Insurance Policy
There could be a number of reasons why you may want to cancel your current auto insurance policy. Maybe you have sold your vehicle and don’t need insurance anymore. You could have moved to a new state. Or your premium went up and you think you should shop your rate. No matter the reason, the decision to cancel an auto insurance policy should not be made lightly. There are many things to consider and some of these factors have a significant impact on your financial future.
Following are 5 things to consider before canceling your auto insurance policy:
1. Contact Your Insurance Agent
It’s possible that your insurance carrier may have made some changes to your auto insurance policy that can affect your rate and/or your premiums without your insurance agent’s knowledge. Your insurance agent, who you probably purchased the insurance policy from in the first place, will be able to review your policy to see if there is anything that can be done to make improvements. It will be worth the time to ask your agent to make sure everything is accurate, when it comes to the way your policy is being rated for usage, mileage, coverages, etc. Your agent may have the ability to make important changes that will benefit you, or even possibly find a new carrier that will better suit your needs.
2. Read the Fine Print
Most auto insurance companies have a straightforward process for canceling a policy. However, some may require you to pay attention to detail. So, it is recommended that you read the fine print and check these key details:
• Cancellation Fees: Some auto insurance companies charge a fee for canceling the policy. How much you are charged can range from $25 to 10% of your remaining auto policy premium.
• Notification: Similar to cancellation fees, different auto insurance companies have different notification periods. It can vary from canceling instantly to requiring at least 30 days notice to cancel the policy.
• Cancellation Letter: Depending on the auto insurance company, you may be able to initiate policy cancellation via verbal cancellation over the phone or through a cancellation letter.
3. If Possible, Wait Until the Policy Ends
If you want to cancel your auto insurance policy, then it is highly recommended that you determine if it would be financially better for you to wait until the policy ends. For instance, if you have only a couple of months left, then it would be better to wait until the end because it would allow you to avoid paying the cancellation fee and not being refunded for those last months.
4. Mind the Gap
When it comes to auto insurance cancellation, always be sure to mind the gap. This is because there is a possibility of gaps that may occur during your insurance policy cancellation process. Such gaps in your auto insurance coverage history can negatively impact your rating, leading to increased premiums. So, if you are canceling auto insurance policy with one provider but plan on seeking coverage elsewhere, then it is recommended that you bridge those gaps. You don’t want to be without coverage for any period of time if you plan on driving.
5. Additional Considerations
There are a couple of additional things you should consider before canceling auto insurance. For instance, be aware that you may forfeit your no claims discount if you cancel your auto insurance policy early. It is also likely that you won’t be refunded for any add-ons, e.g. roadside assistance coverage. Apart from this, if your policy is set up to auto-renew, then make sure to get a better deal before your existing policy automatically renews for another year. In this way, you will make sure that you avoid any cancellation requirements.
In conclusion, no matter whether you are canceling your current auto insurance policy in order to get a better deal from another provider or you are simply looking for better service and coverage, be sure to take the above-listed things into consideration to avoid any extra costs, penalties, and hassles.
Carver Insurance Services, Inc. is a local insurance agency that has been serving residents and small businesses in Murrieta, Temecula, and surrounding areas since 2004. Started by Diana Carver; a second generation insurance broker with over 25 years experience, when after working for several insurance brokerages, Diana felt the need for a brokerage that was efficient and progressive, while still keeping that “hometown” feeling.
Carver Insurance Services, Inc.’s goal is to help you determine what insurance needs you have, meet those needs, and then help you prepare to meet future goals. The Carver Insurance Services, Inc. Family and its agents would love for you to stop by one of their two convenient locations for a free insurance quote or just to say, “Hello!”
For more information, give Carver Insurance Services, Inc. a call today to talk to a friendly, helpful agent.
Carver Insurance Services, Inc.-Temecula
33321 Temecula Parkway suite #102, Temecula, 92592