An auto insurance policy isn’t like a cell phone plan. Just because you’re on a monthly car insurance payment schedule that automatically renews itself doesn’t mean that you have to wait to switch providers. You can walk away at any time. But if you fail to first notify your insurer, you could cause a few unwanted complications.
You can let your auto insurance policy cancel on its own simply by not making your scheduled monthly car insurance payments, but doing so has a couple of risks involved. First of all, you could get hit with a cancelation penalty if you cancel in the middle of your term without giving proper notice. Second, if you don’t already have coverage lined up through another provider, letting your insurance lapse could be costly. If you’re caught driving without it, you could face some serious legal consequences. And finding a new insurer after you’ve been caught driving without insurance will be much more difficult because you’ll be a high risk client.
The Best Way to Walk Away
Always submit your notice of cancelation in writing, and far enough in advance to cover you in the event of any clerical snafus. Regardless of whether or not your decision to switch insurance companies was based on having found a better price elsewhere, or being extremely dissatisfied with the service you’ve received, don’t shoot yourself in the foot by failing to give advance notice. Although the best time to cancel your insurance policy is immediately before it renews, you can always get a pro-rated adjustment that pays you back for coverage you won’t be using.