As a Newfoundland car insurance consumer, you can cancel your policy any time you wish. It may be tempting to do so if you find a company that is prepared to offer you a lower rate after you have bought your coverage. Before you decide to switch policies mid-term, ask your current provider whether you will be charged a fee.
This practice is called “short rating.” The amount of the administration fee levied depends on the company involved and how many months are left on the current policy when the customer decides to cancel it.
When a Newfoundland car insurance company agrees to extend coverage to a customer, it must hold up its end of the contract. You, the customer have the same obligation. If you change our mind midway through the insurance contract, the insurance company will expect to be compensated for the cost of processing the policy cancellation.
If you decide not to renew your current car insurance coverage, you need to notify the provider directly. Don’t just ignore the renewal notice when you receive it from the insurance company. Unless you respond to the insurance company, it considers that you are agreeing to continue to be covered by the company under the terms listed in the renewal form.
A better choice is to notify your insurance provider in writing that you have decided not to renew your coverage. Keep a copy for yourself as proof that you no longer want to be covered by the company.