How To Cancel Car Insurance Policy Anytime
Have you wondered why you may need to cancel your car insurance? Read this article to find out.
We buy car insurance to add a layer of protection to our and from physical damages and protect ourselves from the uncertainties of life. But what if we want to cancel the purchase for some reason? Can you do it? Are there any losses for making the cancellation? This article will answer any possible questions you may have on this topic.
What are the Reasons For Which You May Need/ Want To Cancel Your Car Insurance?
The following are scenarios in which you may need to cancel your car insurance:
1. Selling your car: In case you are selling your current car with no plans to buy a new one soon, it makes sense to terminate the policy for a refund.
2. Stolen Car: If your car is stolen and is not found after it has been reported to the police and you only have third party insurance, you will simply have to cancel your car insurance. On the other hand, if you have a comprehensive car insurance plan, by placing a claim you can receive a claim based on your Insured Declared Value (IDV).
3. Old Car: When a car gets old, often we may no longer want to drive it. Instead of selling it to another person, we can choose to scrap the car. This can also be done in cases of total damage. In such cases, it is also advised to cancel your car insurance.
4. Unsatisfied with car insurance providers: Often after a few interactions with a car insurance company the service leaves us feeling dissatisfied. In such scenarios, you may feel you want to shift to a new one.
What is the Process For Cancelling Car Insurance Policy?
Every car insurance cancellation policy differs from company to company. However, the following steps will provide the basic guidelines for cancelling:
Step 1: Inform your insurance provider that you would like to cancel the insurance policy and why. This can either be done over their toll-free number or you can send them an email.
Step 2: According to your situation the insurance provider will guide you as to what is required.
Step 3: Most insurance companies will provide you with a cancellation certificate or a policy document with ‘cancelled’ mentioned in it. Moreover, a refund if any will also be mentioned.
Step 4: Remember to take your NCB certificate and it can be used to apply for discounts when you apply for a new one.
Will You Be Eligible For A Refund?
When cancelling a car insurance policy, getting a refund depends on both the terms and conditions of the policy and the timing in which you make this cancellation. If you make it before the policy starts, you are likely to get back most of the money minus the processing fee. If you do this after the policy starts the refund will depend on how much time has elapsed since it has started.
Also Read
Benefits of Engine Protection Cover in Car Insurance!
How You Can Handle the Car Insurance Claim Rejections?
Takeaway
In a nutshell, cancelling car insurance can be done easily, moreover, it should ideally not take more than seven to fourteen working days to complete the process. However, make sure to apply for a new car insurance policy soon or you may have to pay fines. Purchasing car insurance is easier than ever now. It also allows you to compare various insurance companies and calculate premiums in seconds. Click here to know more.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
