Pain in Switching Over Different Insurance Companies

Switch to the Best PolicyDue to many reasons you may wish to prorogate your car insurance policy. The reasons could be, you are not satisfied with the services given by the company you are bound with, if you are relocating to different state, sometimes you may be bugged with the car repairs and totally with car itself, so you no more require a car insurance. But it is better to intimate the insurance company in prior because later you may have to pay loads of money for the lapse. This will affect your credit score recordings also.

Before Switching

Written notice should be sent to the insurance company about the date of cancellation when the policy is active. Do not assume that you are safe by just canceling the insurance  not paying the next month’s bill. The next month’s payment will have to be paid in advance if prior notice is not given for the cancellation of the policy.
If you are planning to switch over to another insurance company, and planning to drive the car the entire process, make sure you do not miss to pay car insurance because lapse in the insurance will affect your premium. If your credit history is not good, insurance companies will list you in the risky zone. So make a note of the starting date of the new insurance policy and ending date of the old insurance policy. Therefore pay your premiums on time and be in the safe zone.

To cancel the policy, first call up your insurer and tell them that you want to cancel the policy. Give them the date when you want to cancel your policy. Insurer will give you cancellation form. Read and fill the  details properly before you sign. Also ensure by asking them whether they charge for canceling the policy in the middle  of the term. If you are fetching better benefits from other insurance company its better to switch .

Cancellation Versus Non-renewal

Abide to The Policy RulesYour insurance company may cancel your insurance policy or may refuse to renew it sometimes. So one should first understand the difference between non-renewal and cancellation. There is lot of difference between the cancellation and non renewal of the insurance policy. Your insurance policy can be canceled in two ways, either by the insurance company itself or by you itself. Your insurance policy can be canceled if you feel that you do not need the policy any more. Just by inform the insurance company that your canceling your policy. The end of your insurance policy at the normal expiration date is non-renewal.

Watch How The Policy is Canceled ?

Your insurance policy must be canceled before your previous policy ends. Your insurance policy can be canceled after 60 days only with the following conditions:

  • You should always provide proper and accurate information to the insurance company when you are purchasing the policy. The insurance company itself can cancel your policy if you do not provide accurate information.
  • Any driver who stays with the insured person or operates your vehicle regularly, then the state will suspend driver license or vehicle registration. The company also should provide 45 days written notice before canceling the policy.
  • If the premiums are not paid monthly properly as specified then the insurance company will cancel your policy.

Be Safe with Non-renewal

Non renewal of a policy does not mean that the insurer has done something wrong. It means that company is focusing on different forms.

  • Overweening accidents or claims – If you have done more number of accidents the insurer may not renew his policy. If the underwriting guidelines are not met then also you policy is not renewed. If you have only one not at fault accident within three years then the company will not reject to renew your policy.
  • Traffic violation – If a insurer has done a major violation like DUI then also the insurer does not renew the insurance policy. If you have many minor convictions then also the company will not renew your policy.
  • Guidelines from Company – If you do not qualify for any coverage then the company has all rights to deny renewal of your policy. Few instances such as more of comprehensive or towing claims, coverage for your sports car and etc. do affect your renewal process.