One can easily opt for car insurance cancellation at any time. The thing you need to do is to submit the replacement papers to inform your insurer about the car insurance cancellation. Charges to be paid or not will be decided at the time of the car insurance cancellation process. It depends upon the cancellation period. If you cancel your insurance at the normal insurance term, it will charge you a nominal cost. And if you cancel between the term, the balance amount will be reimbursed.

Overview

  • all must have car insurance. So you must inform your insurance provider when you apply for the car insurance cancellation. It is necessary to inform your insurance provider to continue with cancellation.
  • There is a timeline of 14 days that your car insurance provides you. It allows customers to easily cancel their insurance plan during this period if they want to purchase another policy from some other insurance company to meet their needs. This period starts only when you buy your policy.
  • If you do not place a cancellation demand within those 14 days, your insurance provider will charge you some percentage of the amount, for the delay. The charges will increase as you delay. Delaying it for a month can lead to a charge of 10% extra, if its 2 months, it can reach 20% and further.
  • You are not liable for any refund after 8 months.
  • Canceling your car insurance is an easy process. You just need to request your insurer about the cancellation request through email or phone or sign the documents, if required. Your cancellation request would be processed further after that and you will get a notification within a period of one week.

Don’t forget to buy a new policy after the cancellation of previous

It’s mandatory for every person of any state to carry your insurance papers with you every time. It is proof that you have a protection cover of your car against any damage due to an accident. It gives third-party insurance to cover damage caused to the victim from your vehicle. But if you don’t have your new car insurance policy at the time of cancellation, you might have to face the following circumstances –

  • You might have to pay a penalty for driving without car insurance
  • You will need to bear all the personal and accidental damage expenses from your pocket. Also, you would not be given third party car insurance cover to save you from any legal or financial expenses incurring from the same
  • If you delay it more and more, you would need to pay a higher premium amount.

Hence, if you want to buy a new car insurance plan without facing any consequences, then you must take all the necessary steps to cancel it timely and buy a new policy soon before that.

Reasons why one should be thinking of car insurance cancelation

  1. planning to sell your car- In this case, you would surely need to end the old insurance policy. Take the refunds and buy a new policy, which will offer you a better deal.
  2. your car is stolen- it should never happen to you. And if it is unlucky, you should certainly take up a new insurance policy for your new car. If your current policy is a comprehensive one, then you will be reclaimed for the theft, based on the IDV of your vehicle. You can apply for the cancellation of your policy once you get the assured claim amount.
  3. Old car model- If you want to dump your old car, then there is no point in dragging your current insurance policy. You should immediately cancel it and look for a new policy if you are going to buy a new car model.

The process of car insurance cancellation

  1. Immediately intimate your insurance company about it.
  2. Follow the guidelines given by the insurer.
  3. Ask for your car insurance certificate
  4. Check your refund before the surrender of your policy.
  5. Buy a new insurance policy immediately.

Conclusion: 

Hence, if you want to go for the cancellation of your car insurance policy. Make sure you take into consideration the cancellation process and requirements as mentioned above.

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