How do I cancel my auto
insurance policy?
that you properly cancel your old insurance policy. Failing to cancel your
policy properly will not only cost you, but it could even hurt your credit score.
You are free to cancel your existing car insurance policy whenever you want.
But, you must do it properly in order for the termination to be effective. You
should not simply assume that the policy will automatically be cancelled at the
end of the policy term and that you no longer need to make future bill pay-
ments. Although the insurance company will cancel your policy if you fail to
make bill payments, they will also note it on your credit report.
Furthermore, if you do not give your insurance carrier proper notice of cancel-
lation, you hinder your chances of being able to purchase affordable coverage
elsewhere. This because other companies can, and likely will, check your
insurance and your credit history in order determine rates. If they see that the
insurer has cancelled your policy, they may charge you higher rates. If you
cancel your policy using the correct methods, you can avoid this.
Most insurance providers prefer that you send a letter stating that your desire
to cancel your policy and the date you wish the cancellation to take effect.
Alternatively, you can do this over the phone. The insurance company will then
send you a cancellation request form to sign and return. Take the time to read
and understand it.
However, if you are cancelling your policy in order to purchase a new policy
from a different insurance company, make sure that you coordinate the
effective dates so that your new policy begins the same day, or earlier, than
your old policy ends. You do not want to risk being uninsured for even one day.
