The decision to cancel a car insurance policy should be well-considered, just like the decision to purchase one should be. You must consider the repercussions of terminating your policy and plan your next steps.
Reasons For Cancelling A Car Insurance Policy: People might cancel their car insurance for many reasons, which are listed as follows:
- Selling The Car: All car insurance contracts are good for at least a year. Long-term policyholders will have an additional coverage term of up to five years. Chances are good that you won’t wait until your insurance period expires if you decide to sell your car. You’ll sell the car when the price is right or you feel the time is right.
- Changing To A New Insurer: If you had a bad experience with your previous insurer, you might consider looking for a new one to get more car insurance benefits. While switching to a new insurance provider, you will need to cancel your current policy.
Car insurance policies have no standard cancellation procedure because providers may have different processes. Even though the fundamentals don’t change, some insurers might have one or two additional steps.
Step 1: Let your insurance provider know you’ve decided to cancel your car insurance coverage. You can do this over the phone or by email. In terms of the specifics of the cancellation process, they will advise you.
Step 2: The insurance provider will request some documents based on the details of your cancellation. For instance, if you state that you are cancelling your policy because you are “selling your car,” the insurance provider will request a Sale Deed. They will ask about the new policy if you state that you are switching insurers as the reason.
Step 3: After you submit the necessary paperwork, the insurance provider will review it. If your request to cancel the policy is approved, you will receive the policy with the word “cancelled” written on it. You will also get the No Claim Bonus certificate, if applicable. *
Online Process: Some insurers also provide an online cancellation or self-cancellation process in addition to the three-step offline process described above. To cancel your policy, in this case, you will need to sign in to their website and follow the instructions.
Refund Procedure: You may be eligible for a refund depending on when you cancel the policy and its terms and conditions. Look at the following two situations;
Cancellation Before the Start of the Policy: In this case, you will likely receive a nearly full refund of your payment, with the possibility of processing fees and other dues being subtracted.
Cancellation After the Policy’s Start: A prorated refund will be given in this case. You have a few days’ worth of car insurance coverage.
Refund Timeline: Your payment method will impact how quickly you receive your refund. The time it takes for the refund to get to you is usually 14 working days.
While you are deciding to cancel your policy, always remember to pay your car insurance premium on time.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
