Breaking up with your Auto Insurance Provider Need Not Be Hard to Do Author:    Posted under: Auto InsuranceAuto Insurance questions answered


Nowadays, cancelling an auto insurance policy may seem as complicated as going through the hassles of a breakup.  The sleepless nights, constant worrying and loss of appetite (or money), are more than enough reasons to put anyone on the verge of losing wits. But don’t fear! Like a lot of stuff these days, it is reassuring to know that doing so may very well be as easy as changing your “status” on social networks.—all you need is timing!

But before you “drink-surf” your way to edit your profile, check out these important stuff to consider that will probably save you a lot of time and heartache:

I want out, why?

There are a lot of reasons why you may choose to terminate your auto insurance policy. It may be that you’re moving to another state, getting rid of your car for a new one, dissatisfied with your existing company’s service, or just plainly clearing the air for the tons of potentials — “awaiting confirmation”. Whatever your reason may be, you should know that you have the right to do so. However, always remember that if you don’t give your insurer sufficient notice, it could end up costing you lots of money and/or negatively affecting your credit history.  But don’t just leave a message, tweet, shout-out, and go on your merry way thinking it’s over when you say it’s over.

Dos and Don’ts

Remember, a formal written letter given in advance is the proper way to go. Like any breakup, it is always safe to part as amicably as possible so as to avoid any hard feelings between each party. Be sure to include the date of termination to give them ample amount of time to process and close out your policy.

Never ever quit a policy by simply stopping to pay your premium. Although with some companies this automatically terminates your policy, it may very well appear that the company has cancelled you and terminated your policy because you have been marked as a “NON-PAYER”. Not good to have on your wall/resume! Future insurance companies will see this and will brand you under “high-risk” in which case will be grounds for charging you higher rates! So it’s always better to come out clean having no excess baggage dragging you down in the future.

It’s always a good idea to just wait until your existing policy comes up for renewal and then let them know of your intent to discontinue, otherwise you will have to pay penalty fees like the “short-rate” policy some companies have for cancelling prematurely in the middle of a policy term—a sort of “here’s your ring back but pay me back the nose job I got you for Christmas” thing.

Finally, you don’t really have to wait till your existing policy nears its end before shopping around for new ones. Ok, so maybe this doesn’t really go well with “I’m a one-policy type of guy” but let’s face it –you don’t really go where the grass is greener without seeing it from a far. And if anything else, this merely is just to avoid an unwanted lapse in your coverage and be caught in the act without one! Not even for a day.

Be smart. Check everything twice and make sure that your next insurance provider and their policy is worth all that trouble. As long as you are considerate enough  to give your insurance company plenty of notice when you want out from their auto policy, and then be willing to go through the official termination process, you’ll be fine and changing from “it’s complicated” to “ensured” in no time.

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