Whenand How to Cancel Car Insurance?: When the decision has been made to cancel the Car Insurance, the first thing to do is
notify the company in letter to cancel the insurance contract, submit an
attached copy of the official identification of the interested party and the complete
information of the contract. Once this is done, you will have to wait for the
response of the institution and start with the insurance revocation process.
However, canceling car coverage should not be taken
lightly. Since, remaining without the financial protection of an institution
that supports us in the event of an accident can be a decision that costs us a
lot if we have an accident.
Reasons
for cancellation of the vehicle policy
There are a number of reasons why you someone wants to
consider terminating the policy before the term expires. Among the main ones
are that the service with which the insurance is contracted has not been what
was expected at the time of an incident occurred or that the price of the
premium and the general conditions have been modified, among others.
Therefore, it is worth analyzing if you find yourself in
one of the following situations before canceling vehicle coverage in order to
continue with the revocation process.
Also, Check: How To Get Car Insurance Online
Also, Check: How To Get Car Insurance Online
Changes
to the general conditions
One of the main reasons for canceling the policy is the
changes to the contract. By law, the company must notify the insured of the
change in the price of the premium or the general conditions and grant the
insured the possibility of canceling the insurance if it is no longer
convenient.
Change
of vehicle owner
Generally, auto insurance contracts last one year. And
even if you have decided to make the installment payment of the premium, the
insurance company will continue to be charged even if you no longer use it.
Therefore, if it is decided to sell the car before the end of the year, it is
advisable to notify the insurer so that it can revoke the contract and
reimburse the unclaimed premium.
Total
loss of the insured asset
You can request the withdrawal of coverage if the vehicle
is declared a total loss after a claim and the insured considers that there is
no longer any point in continuing with the policy in force.
Service
dissatisfaction after an accident
Sometimes it happens that after an accident, the
experience with the insurance company changes. So it is advisable to evaluate
and analyze the service provided by the insurer at the time of the incident and
if it met your expectations or you want to change the company.
Expiration
date
When the vehicle policy is about to expire, you should
ask yourself whether to continue with the existing company or cancel the
contract renewal. It is very important to consider that each company has
cancellation deadlines and procedures. That’s why is advisable to find out what
they are within the terms and conditions or ask the insurer directly.
Process
to revoke the insurance contract
Canceling the policy properly will prevent headaches that
can be caused by the lengthy procedure with the insurer. Therefore, the first
thing you should keep in mind is the
terms and conditions of the insurance contract since it will include
stipulations for early cancellation and information about automatic renewal. It
is also recommended that at the time of contracting the policy, the insurer's
executive be asked any questions that may arise regarding the cancellation of
the insurance.
It is important to note that if what is desired is not to
renew the contract automatically, the contractor must send a letter to the
insurer before the end of the last 30 days of validity. The document must
clearly state the intention not to renew the agreement newly and attach a legal copy of any official
identification. If after this period this desire is not expressed in writing,
the company may renew the contract on the understanding that the insured is
satisfied and in accordance with the service.
On the contrary, if the intention is to cancel the
vehicle policy in advance, it is necessary for the interested party to write a
document specifying all the details of the contractor, policy number and the
cancellation request, together with a clear duplicate of official
identification. Some financial institutions also request a policy cancellation
form provided by them to follow up on the request or call their service lines
to start the process. However, depending on the conditions of each insurer, the
penalties imposed on the contractor and the premium that was not consumed.
How
can I get my money back if I cancel the insurance?
If you have paid the auto insurance annually or
semi-annually, you must know that if you cancel the policy, you can recover the
amount that was not used. However, each insurance company has its own conditions
to return the premium that was not consumed. It is advisable to keep in mind
the terms and conditions of the contract and approach the insurer to clarify
any doubts.
There are two types of insurance returns. The first is
the one considered after the cancellation of the policy and reimburses exactly
what remains of the payment that was made to the insurer. And the second is the
one that is considered with respect to the terms and conditions that each company stipulates, which must be
stated in the contract and describe the percentages according to the time that
the coverage has been occupied and the monetary penalties to return what was
not used.
To recover the unused payment, you must cancel the policy
in writing and request a refund of the premium if you have made the settlement
annually. The insurance company will issue an endorsement with the premium in
favor, which can be cashed by check or if the insured asset has been sold, that
balance can be used in favor of other coverage in another vehicle.
