If you find a new insurance carrier for your automobile, you will need to cancel your old policy. Make sure your new policy is in place before you cancel the old policy. This will keep you from having a lapse in coverage and receiving some type of fee or penalty from the Department of Motor Vehicle in your state, according to the Car Insurance website. Your old policy can be canceled several ways. Some insurance companies will allow you to cancel using the company website. A letter or an email can be used in some cases, depending on the state.
Call the insurance company. Speaking with a representative provides you with an opportunity to get all of the information needed for cancellation. Let the representative know you want to cancel your insurance policy because you have a new carrier. Get the mailing address for cancellation requests. Send your request and indicate the date you want the insurance cancelled and the reason for the cancellation. If you pay your insurance premiums by way of automatic deduction from your checking account, your request should be sent 10 days prior to the next payment deduction. This provides the insurance company with enough time to cancel the automatic payment.
Give the new insurance information to your old insurance carrier. Insurance companies will sometimes need proof that you have insurance before they cancel your old policy based on state laws. Insurance companies are required to notify the state insurance department when a policy is canceled for tracking purposes, according to the Insurance website. Send a copy of your new insurance policy information with your cancellation letter.
Ask for a confirmation letter. You can request a confirmation letter in your original cancellation letter. The insurance company will send you a confirmation letter that confirms your request to cancel has been processed. Store this letter with your important papers. If you don’t cancel, your policy will continue to renew automatically, which means money will continue to be taken from your bank account every month.
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