Car insurance is absolutely required to drive your car legally on the road. There are only certain instances where people need to cancel their car insurance policy. Cancelling your car policy comes with a few conditions. Let’s take a look at the top reasons why people cancel their car insurance policies:
If you are unhappy with your current insurer, you have the option to switch over to another insurer you may feel is better. You can also cancel your policy and buy a new one from a different insurance provider. The choice is yours. If you have not made a claim, it would be more advisable to switch your policy to another provider because your no-claim bonus is portable. You will be able to retain the benefits of having an existing policy.
Free Look Period
Every insurance policy offers a free look period of generally 15 days or 30 days. Within this period, you can view your policy and review the details. If you are unhappy with it, you can return the policy and get a refund of your premium. The time stipulated begins from the time you receive the policy document. The insurance company will, however, deduct any stamp duties and other charges before refunding the money.
Theft of Car
If your car has been stolen, then you will have no choice but to cancel your policy on the car. If you have paid premiums recently, then you can claim for a refund. This is applicable to third party liability policies. If you have a comprehensive plan, then the policy will cover the loss incurred and pay you the insured’s declared value. Once the claim is paid out, then the policy will automatically terminate.
Sale of Car
At the time of selling the car, you have the choice to either transfer the existing insurance policy to the buyer. You can also cancel your policy and let the buyer take out a new policy. If you opt to cancel your policy, you might be eligible for refunds if the policy is valid.
Car has crossed the age limit
If your car has become too old, some insurance companies will refuse to provide an insurance policy. If the car’s condition has also deteriorated, then insurers will be reluctant to protect it. In this case, you might have to cancel your policy.
Traveling out of the country
In the event that you have to relocate on a long term basis abroad, if you are not going to be using your car for a while, you may not want to pay the premiums to protect it. But remember, you will not be protected in case of theft and other damages that might be cause even if your car is parked.
To cancel your car policy, you will most likely need to submit a request in writing via email or mail. The insurance company will provide you with all the information about the process and documents required. You can then submit your request, your documents and sign the declaration which will authorize the insurer to cancel your plan.
Once cancelled, you should also receive a confirmation letter about the same. This letter will also contain information about the premium paid, the charges deducted and the refund amount.
- Unhappy with the insurer
- Free Look Period
- Theft of car
- Sale of car
- Car has crossed the age limit
- Traveling out of the country
If you are unhappy with your current insurer, you have the option to switch over to another insurer you may feel is better. You can also cancel your policy and buy a new one from a different insurance provider. The choice is yours. If you have not made a claim, it would be more advisable to switch your policy to another provider because your no-claim bonus is portable. You will be able to retain the benefits of having an existing policy.
Free Look Period
Every insurance policy offers a free look period of generally 15 days or 30 days. Within this period, you can view your policy and review the details. If you are unhappy with it, you can return the policy and get a refund of your premium. The time stipulated begins from the time you receive the policy document. The insurance company will, however, deduct any stamp duties and other charges before refunding the money.
Theft of Car
If your car has been stolen, then you will have no choice but to cancel your policy on the car. If you have paid premiums recently, then you can claim for a refund. This is applicable to third party liability policies. If you have a comprehensive plan, then the policy will cover the loss incurred and pay you the insured’s declared value. Once the claim is paid out, then the policy will automatically terminate.
Sale of Car
At the time of selling the car, you have the choice to either transfer the existing insurance policy to the buyer. You can also cancel your policy and let the buyer take out a new policy. If you opt to cancel your policy, you might be eligible for refunds if the policy is valid.
Car has crossed the age limit
If your car has become too old, some insurance companies will refuse to provide an insurance policy. If the car’s condition has also deteriorated, then insurers will be reluctant to protect it. In this case, you might have to cancel your policy.
Traveling out of the country
In the event that you have to relocate on a long term basis abroad, if you are not going to be using your car for a while, you may not want to pay the premiums to protect it. But remember, you will not be protected in case of theft and other damages that might be cause even if your car is parked.
To cancel your car policy, you will most likely need to submit a request in writing via email or mail. The insurance company will provide you with all the information about the process and documents required. You can then submit your request, your documents and sign the declaration which will authorize the insurer to cancel your plan.
Once cancelled, you should also receive a confirmation letter about the same. This letter will also contain information about the premium paid, the charges deducted and the refund amount.
