Depending on your car insurance carrier, you may be charged a cancelation penalty. Call your agent and ask before you cancel so you can weigh the cost against the advantage of switching, or at least delay the decision.If you’ve paid your policy in full for the year and decide to cancel or switch before your policy term ends, you are entitled to a refund on the unused balance. Be sure to mention this in your written cancelation notice.
If you’re still making payments on your vehicle, it’s a good idea to let your lien holder know that you’ve changed car insurance companies to avoid a force-placed policy.
Most states require that you register your car within a certain number of days of becoming a resident, at which time you’ll have to show proof of car insurance coverage.
While many policies allow you to cancel by phone, it’s always a good idea to confirm your intention in writing (and keep a copy of the letter for your files). Since many policies are continuous, written confirmation assures that you aren’t automatically charged for a policy you thought you canceled. That’s especially important if you’re moving to a different state. It’s easy to lose track of things when you change address and non-payment of an overlooked bill can mess up your credit rating.
Shop for your new car insurance policy before you cancel your existing one. That way, you’ll be assured that there’s no gap in coverage. Use your old policy to comparison shop for cheaper car insurance rates or better coverage. You can get competitive quotes free from top-rated carriers on this website. You’ll get the most accurate auto insurance quote if you know your new zip code.
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