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How to Cancel a Car Insurance Policy: A Guide


Sometimes, a reason or two can get you to cancel your car insurance. These are the things you need to know about how to do that properly. You may be thinking of replacing the old one with a better and cheaper alternative.

The idea of cancelling an auto insurance account will always be possibility. Reasons of cancelling your insurance may come in different forms; you may have sold your car, moved to a different place, financial difficulties, plans to switch accounts and many others. Given that you have a valid reason; it is perfectly legal to cancel auto insurance, precisely because you have the right to do so.

 It must of course be stressed out that cancelling auto insurance is a legal and corporate process. Hence, it is required that anyone who wishes to cancel his/her own account must have a general knowledge of the process of cancelling. Moreover, a single lapse in cancelling will mean that your insurance is still continuous, and consequently you would still be required to fulfill your financial duties in the transaction.

Here are the general steps and tip on how to cancel your auto insurance account.

  1. The first and foremost step would be to contact your insurance company. Although this can be through e-mail or through the telephone, it is still advisable to talk with your insurance company personally in their office. This is to make the entire process clear and smooth. Before going to your insurance company, you must bring the necessary documents to prove the validity of your desire to cancel your account. If you have sold your car, for instance, bring the sales statement and receipt that will prove this. After settling this, you can already expect that your premium collection will be ceased and if you still have unclaimed coverage claims, you may even refund them.
  2. In actuality, cancelling accounts would not really be that easy as one-two-three. Different companies have their own rules and regulations that must be strictly enforced. You must always bear them in mind and follow the necessary instructions they say.
  3. Contact your local DMV or motor vehicle department. An important thing such as cancelling an account is not entirely a personal issue, for lapses in insurance coverages is deemed as crucial especially by your local vehicle department. Clear any issues with them by simply informing them about your move; they will suggest the next moves that you will do. Most likely, they will require you to get a new car insurance policy that will cover your new vehicle, if that is the case.

The cancellation of auto insurance is not really a hard task, but it must never be taken for granted. Follow these simple rules and cancel your auto insurance properly and completely. 

Find out and study more on car insurance processes policies.  There is a one-stop-shop for your different and complicated auto insurance requirements. You can get the best car insurance companies, the cheapest quotes, and the insurance tips including information.