Procedures to switch the car insurance policy

July 7, 2014 in car insurance by admin

Car insurance companies provide flexibility to update and switch over the coverage policies to new companies before being the actual term ends. This gives an advantage to switch the insurance policies to new companies that offer comparatively the best deal. But, cancelling off the existing policy is subjected to some terms and conditions where you may not get the full refund of your money.  Plan a benefited move by taking account the following suggestions.

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Right time to cancel off the old coverage 

It is best to always have multiple quotes from insurance companies before being stuck with the single one. On purchasing the particular company’s insurance, you can switch to other within 2 weeks of the registration i.e. before receiving the documentation. In those cases you will get the entire refund of your premiums. If you cancel it off after 2 months, you are entitled to no refund. Switching in renewal period is also the best idea to claim for entire refund of premiums.

How to end up the previous auto insurance

Planning to switch at the renewal time helps a lot that you can claim your entire premiums even without leaving the last premium amount. This is the efficient way to switch the policies. Through the appropriate writing inform the insurance company of your cancellation of policies specifying the actual date to close your accounts. If you are ending up in the mid-term of last premium date you may not receive the remaining premiums. Some insurance companies charge a penalty for in-between cancellation that is slightly higher than the cancellation fee.

Get an authenticated cancellation

It doesn’t get end up when you give a written statement of cancelling the coverage plans to the old company. It is mandatory to get an official policy cancellation notice from insurance company specified with the appropriate ending date and time of the policy. If your cancellation is not properly observed your policy will continue to get renewed every six months and a year in which the automatic termination will be endorsed as for failing to pay the premiums. So before moving to new company make sure you have properly ended all your previous accounts. Once processed, you are free to move with new companies in purchasing their insurance coverage.