When an auto insurance policy is issued, consumers are given a cooling-off period of 14 days. This gives the policyholder an opportunity to reflect on the purchase they have made and if they are not entirely happy, coverage can be cancelled without any financial penalty. However, some consumers may find that they are not entirely happy with their insurance policy and will want to cancel after the 14 day period of grace is over. Under these circumstances, there is often a chance that certain penalties will apply.
Before cancelling a policy after the cooling-off period, motorists should read through the terms and conditions of their policy to see if they have any financial obligations to their insurance company. If there is any confusion, it may be a good idea to speak directly to a representative of the company to find out further details. Policies can vary greatly so there is always a chance that your insurance coverage can be cancelled without penalty as long as written notice of cancellation is provided.
If a motorist is cancelling a policy because they have found a better offer elsewhere, it is advisable to speak to your existing insurer to see if the can match the terms and prices offered by competitors. In many instances, an insurance company may be flexible enough to match a quote offered by a rival company. Many carriers will be happy to do this if it means they won’t lose business.
If a financial penalty is applied to a cancellation after 14 days, motorists should calculate whether the savings they’ll make on an alternative policy will outweigh any payments due to the existing insurance company. If the move doesn’t look to be cost-effective, it may be benefical to wait for the period of insurance to expire before actually making the switch.