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How Do I Cancel or Switch My Car Insurance?

Ashley Kane

Maybe you’re moving to a new state and just received a great quote from a new provider. Perhaps, you’ve decided to stop driving or are moving to a part of the city that just isn’t practical for automobiles. There are many reasons you may decide to cancel or switch your car insurance. However, there are some things you should know before you do.

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Avoid the Gap:

First, contact your current car insurance company or read the dreaded fine print on your coverage. Some policies expire as early as 12:01 am on the last day of your policy and that can cause you unnecessary problems. For example, if you get into an accident at 9:30 am that day, then you may be considered uninsured and be liable for damage out of pocket.

You may face fines or penalties depending on state laws. Also, having a gap in your coverage – regardless of the amount of time – can cause your auto insurance rates to rise steeply.

Avoid all of these repercussions by simply planning ahead. Find out which provider you plan to change to before your original policy’s expiration date.


Be Aware of Potential Costs:

Talk to your current provider about potential cancellation/termination fees. Often, carriers will charge these fees if you cancel before your policy is over. There are usually ways to avoid them: your carrier might waive the fee or your new provider might offer to refund it.

Either way, it’s good to know about the costs upfront so that you won’t be left blindsided.


Check, and Check Again:

The most important thing to remember when cancelling or switching auto insurance is to check and re-check all changes.

  • Confirm – more than once – that your old policy is cancelled. Sometimes, you are required to write and sign a termination letter.
  • Make sure your new policy covers all your needs. Read all of the details.  The rate might be cheaper, but does it still have all the same features that are important to you?
  • Be sure that your new coverage starts either before your old one ends or on the same day. Be sure that there is no gap in coverage.
  • Confirm all costs with your old, and new, carriers.

Cancelling or switching your car insurance doesn’t have to be complicated. Just keep these tips in mind for an easy transition. 

Photo credit (top image): XPeria2Day

Photo credit (inline): Pictures of Money