When to Cancel Your Auto Insurance
by Maddi Butler
Switching car insurance before your policy is up isn’t a decision to take lightly. If you do decide to change your insurance, make sure you know exactly what you’re in for.
Technically, you can cancel your insurance at any time—you don’t have to wait out the life of your policy. However, cancellation rules may be different for each insurer.
Some insurers charge a cancellation fee. If you’ve paid your premium in full, you may also receive a refund for the remaining months on your policy. Some insurers may terminate your policy immediately, while others will end your coverage after a time period such as 30 days.
However, before you cancel your policy, make sure you’re getting the best rate on insurance. If you’ve gone through recent life events such as marriage or buying a home, you may be able to bundle your insurance and save money. Update your insurance company with any major life changes, as you may be eligible for discounts you didn’t know about.
The other thing to be aware of when cancelling your insurance policy is that it could lead to gaps in your car insurance coverage. Typically, you will want to have your new policy in place before your old one ends. This way, you won’t have gaps in your coverage—something insurers may charge you a higher premium for.
Additionally, driving without insurance is illegal. If you are uninsured and get into an accident, it could spell financial disaster.
If you’ve made sure you’re getting the best rate, taken cost into account, and decided on a new policy, go ahead and call your provider to cancel. And if you haven’t figured out your next policy, try comparing fast, free quotes at Auto-Savings.com.