What happens when you cancel your auto coverage?
If you need to cancel your auto policy, you may not know what to expect. In fact, you might not even know if you are able to cancel your coverage in the first place. Here is everything that you need to know about auto policy cancellations.
- You Are Free to Cancel Whenever
Technically, you can cancel your auto insurance at any time. All you need to do is call your insurance provider and ask. Sometimes your car insurance will be canceled immediately after you call and you will receive a refund for all your prepaid premiums. In other cases, your coverage will remain valid for 15-30 days, or until your next payment is due.
- Cancellation Policies and Fees
Every insurer will have different cancellation rules. For instance, some may require you to pay a cancellation penalty. Others may impose a 30-day waiting period before they will cancel, with payment due up until that date. Finally, some insurers will prevent you from cancelling altogether if you have only secured the policy in the last 30-60 days.
Typically, cancellation fees are only charged when you attempt to cancel a policy right after securing it. However, some insurance providers issue fees regardless of how long you have held the policy for. Some insurers will set a flat-rate cancellation fee while others will charge you a percentage of your remaining premiums as your fee. Because every insurance company has their own guidelines, it’s important to speak to your insurance provider so you know what to expect.
This is what you need to know about auto insurance policy cancellations. Do you have additional questions regarding your car coverage? If so, then contact the experts at Steve Wilk Insurance. Check out our new office today at 310 S Main Street, Suite C, Lombard, IL 60148.