Car insurance is a very personal thing. It is entirely based on your own needs, professional requirement, domestic obligations—it is entirely about you. Hence, since it is precisely you who uses your insurance, only you have the most power to cancel your insurance deals, anytime you want and anytime circumstances compel you to do so.
Cancelling your car insurance is of course legal process, and all you have to do pass certain papers that your company requires. The issue on the grounds of your cancellation will of course be beyond their concern, for it is totally your prerogative and right to do so, given that you subscribe to their rules and regulations.
When you are planning to enter into new deals (with another type of coverage or with another car insurance company), it is very important to ensure that your cancellation procedures are properly executed so that when you get into a new policy your previous transactions are already terminated. It is a standard operating procedure for insurance companies to retain their customers’ policies until the customers themselves file the cancellation, thus entitling the fees to their subscribers without notice.
The truth is, cancellation of a car insurance policy is not really a difficult thing. Depending on the rules of the auto insurance company you applied in, the procedures are relatively not a hassle. The general rule is that you have to fill out a form for the cancelling and you have to write a formal letter that tells the rationale of your cancellation. Of course, your right to cancel doesn’t mean that you can cancel it with no reason at all. You need to prepare some papers that will prove the validity of your cancellation. For instance, you need to provide a proof that your car was stolen and your new car is not suitable for the insurance coverage that you already have. After this, the other lines in the process will follow smoothly.
The process of cancellation is often accompanied by a certain amount of cancellation fee. Nonetheless, you can still receive the payments that were not compensated to you by the company. Moreover, a cancellation will not necessarily be a hutch especially if you hae already found a better insurance deal.
Another important but rather forgettable thing that you must remember is that it is a must to have already have a new policy as replacement when you switch car insurance deals. It is advisable to always have insurance every time, for no one knows exactly what lies on the road for them.
The best car insurance will keep you away from the hassles that will inevitably arise in the long run.
