Can I change insurance if the policy has not yet expired?



For some reason you have thought about canceling your car insurance policy before it expires, either because you found a cheaper rate with another insurance company, you are going to sell or replace your car, you are moving out of state, or you want to reduce the number of of cars at home, whatever the situation, you must take into account certain procedures before the cancellation.

If you have already decided not to continue with your current policy, you must first contact the insurer and cancel. Do not simply stop paying, because it can affect your credit history.

Although many insurers in their contracts indicate that you can cancel your policy at any time, you always have to send a written notice with the date you want the cancellation to become effective or in some agencies you can do the process online at your Internet page.

However, some insurance agencies prefer to speak with the policy holder at the time of cancellation, if that is the case, keep in mind the following:

  • The policyholder must call the insurance company
  • Have the corresponding documentation and the policy number at hand
  • Inform that you are going to cancel your auto insurance
  • They will explain the costs to you and may ask you to return the car insurance title to them.
  • Be sure to get confirmation of the cancellation from your insurer.

Before you cancel, make sure you buy a new policy to avoid a lapse in your liability coverage, recommends the Texas Department of Insurance (TDI).

When you want to disable your policy, there are several factors that you must assess first:

  • If you still owe money on your car. Your lender will require you to have comprehensive and collision coverage. If you cancel or lose these coverages, your lender will purchase a self-interest coverage of auto physical damage coverage and add the cost to your loan payment. This coverage is expensive and only protects the lender.
  • Cancellation fees. Some insurers charge a cancellation fee. The rate may vary. For example, if you buy a 12-month policy and cancel it after nine months, you will have to pay 10% of the remaining three months.
  • The notice period can range from immediate cancellation to requiring 30 days notice to revoke your policy.
  • Cancellation letter. As mentioned above, some insurance agencies require a cancellation letter while others may settle for a verbal cancellation over the phone. Your policy should detail what you have to do to cancel it correctly.

Not notifying your insurance company of your cancellation and letting your policy “cancel by itself” will not really happen, it will only be canceling due to non-payment by the insurer.

Your policy may never be cancelled, and if you subscribe to automatic electronic payments, your policy will likely continue unless you request cancellation directly with the insurance company. The money will continue to be withdrawn from your account and you will have duplicate coverage.

What would it be a good idea for you to consider prior to dropping your strategy?

It might in any case merit dropping your strategy regardless of whether you cause a fine. Prior to dropping your inclusion:

  • Look at the expense of the new approach with the expense of the one you need to drop. Suppose the value contrast is under 10% each year. All things considered, you could attempt to get your ongoing protection supplier to match the new cost. This modest quantity ought not be no joking matter for an insurance agency, particularly assuming your record is on favorable terms and you have different strategies with the organization. On the off chance that you end up in a tie (or near a tie), you really want to choose if the new strategy is worth the effort.
  • Look at the benefits of the approach and the inclusion of the new arrangement with the ongoing one. On the off chance that another organization can offer administrations that better address your issues or strategy includes that are significant to you, it could merit paying more to switch.
  • Comprehend the installment terms. Insurance agency frequently have different installment strategies. You ought to ensure you know the provisions of these strategies and pick the one that best suits your requirements.
  • Inquire as to whether there will be ramifications because of dropping the arrangement being referred to. Individuals frequently track down less expensive collision protection with another organization and choose to switch. They then, at that point, get a horrendous shock when their rate goes up. That is on the grounds that they lost their multi-strategy or group markdown.


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