Cancelling your car insurance is needed from time to time. Knowing when you can cancel your car insurance will make sure your car is covered for the right amount of time. Assuming you know how to cancel your car insurance only leaves the question of when to cancel.
Cancel Car Insurance Anytime
Technically you can cancel your car insurance anytime. The circumstances in which you cancel will determine if you could incur a penalty. It is best to request a car insurance cancellation to help avoid penalties. Cancelling immediately after purchasing a car insurance policy could cause you to incur a fee based on your car insurance carrier. Cancellation fees can vary from $25 up to a percentage of your overall premium. The good news is fees are usually not charged for cancellation. Normally fees are only charged if you cancel within a short period of time of starting a new policy or renewing an existing policy.
The best time to cancel your car insurance is after you have another policy set in place. You can switch at any time although renewal time is the best time. Go through the entire process of purchasing another car insurance policy and make your first payment. It is only then you should cancel your existing policy.
Alternatives to Cancelling Car Insurance
- Reduce Coverage: Lower your liability limits to your state’s minimum coverage. If you are concerned with physical damage while the vehicle is sitting, comprehensive coverage will protect it.
- Purchase a Non-Owner’s Policy: While you are without a vehicle a non-owner’s policy will protect you against a liability claim which could potentially extend above and beyond the car owner’s policy.
Just because you can cancel your car insurance at anytime does not mean you should. Going without car insurance in many states can make you high risk when it comes time to purchase car insurance again. Car insurance proves your financial responsibility in case of an accident. Without car insurance you could be subject to quite a few different penalties if you are caught driving without it. Penalties vary by state but can really make going without insurance an expensive choice.
