How to Cancel Your Car Insurance Policy

If you decide to cancel your car insurance policy, you need to go about the process in the right way. Simply stopping your payments is not a good strategy, and it can affect your credit as well. Whatever the reason you have decided to stop getting car insurance coverage from a particular company, check the policy language to find out the right way to cancel.

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Many insurance policies require the customer to notify the company in writing that they wish to cancel the coverage. If so, be sure to include all the information the insurance company needs in the letter. The policy number should be clearly set out, and it’s a good idea to specify the make and model year of the vehicle as well. Tell the insurance company the date that you wish to have your coverage terminated. Then send the letter by courier or registered mail so that you have proof of delivery.

You shouldn’t assume that your existing car insurance policy expires if you don’t tell the insurer that you wish to renew the coverage. Unless the insurance company receives instructions to the contrary, it will renew the policy and issue a bill for the next payment term. Ignoring the bill and not dealing with canceling the policy yourself means the insurer will cancel it and this information will appear on your credit report.

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