If you decide you want to cancel your Arizona car insurance policy, start by checking the policy language to find out the right procedure for doing so. Each company sets its own procedures for policyholders who decide they no longer want to be covered, and it’s important to follow them carefully. Stopping the payments on the policy is not the right way to go; the insurance company can terminate your coverage for non-payment and this can negatively affect your credit rating.
You can also contact the insurance company directly to find out what procedure you should follow to cancel your coverage. In most cases, the insurer will need to be notified in writing that you want to cancel the policy or that you don’t want to renew your coverage.
Before you send out your letter to the insurer, make sure that you have the correct mailing address. You should also ask if you should be sending it to a specific department or to a particular person for processing. Sending the letter by registered mail or courier provides you with proof of delivery.
If you are canceling your Arizona car insurance policy in the middle of the term, the insurer may charge an administration or cancellation fee. You would be entitled to a refund of any premiums you paid in advance, less the amount of these fees, so be sure to request this amount in your letter.