How To Cancel Your Auto Insurance Effectively

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How To Cancel Your Auto Insurance Effectively

via FIQ Car Blog by Mitch on 11/16/11

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There may be a time when you want to switch auto insurance companies due to an issue that you have with the company or for the simple fact that you want to save some money. You have to know how to cancel your auto insurance policy properly without breaking any rules or causing yourself heartache in the process, such as being double billed due to error on your side. Understanding how to do this properly will help you in the long run.
Remember that some auto insurance policies do not cancel at the end of your policy. Unless the agency hears from you, some will consider you still a customer and auto renew your policy. Make sure you know when your policy would renew and be sure to think ahead of time before your policy expires if you want to switch insurance agencies or not.
Simply not paying the policy is not a good way to canceling your policy. If you still owe the company some money and refuse to pay, you could then be in more trouble then you began with. You could then begin racking up fees and if you wait too long to pay or at least contact the company; they could go out and get legal representation to make you pay.
Make sure that when you decide to sever your relationship with your insurance company to write a written letter to them. Make sure to keep a copy for yourself. If you cancel over the phone, you have no record of doing so. By doing so by written letter or even email would give you some sort of receipt for the matter so that if they accused you of not notifying them, you would have proof.
If you can wait for your current policy to expire, do so. Some companies will charge you a fee for canceling in the middle of your policy. Take the extra time you will have while waiting for your current policy to expire in order to shop around. If you have a couple more months on your current policy, make sure to take all of that time to make sure whichever policy you are switching to is the right one for you.
If you cancel your policy, make sure you have a new one lined up. Before your insurance provider will cancel your policy, they may request a copy of your new policy to verify you have insurance on your vehicle. If you have already signed onto a new insurance policy, make sure you have all the documentation available to send if needed. In some cases, your new auto insurance provider will offer to cancel your policy for you on your behalf.

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