If you paid your premium in advance and cancel your policy before the term ends, the insurance company must reimburse the remaining balance in most cases. Most auto insurers will pro rate your reimbursement based on the number of days your current policy was in effect. Your car insurance policy won't be immediately canceled because you don't make a payment. Auto insurance companies are required by state law to give notice before canceling their policy.
Depending on the state, you'll normally have 10 to 20 days. Your company will notify you by mail or email before canceling your coverage. Talk to a licensed insurance agent to learn more about how driving your vehicle without insurance might affect you. Some auto insurance companies also charge a fee for canceling your policy before the policy term ends.
If your car is financed and you are required to have insurance for additional expenses, make sure you have a replacement insurance policy in place before canceling your reservation. You should be able to receive a refund for unused premiums if you cancel your intermediate car insurance policy. You may have to cancel your car insurance for a variety of reasons, but it's important to consider your plan beforehand so you don't have coverage. In addition, additional expense insurance is a relatively inexpensive way to protect yourself from having to owe money for a car you can't even use after it's been destroyed in an accident.
Call your old insurance company and find out if your coverage has expired and, if so, how long you have been without car insurance coverage. However, it would be useful to study the specific cancellation policy of your car insurance company to understand all the nuances. You can generally get the best rates for emergency insurance if you buy it through your auto insurer rather than at a dealer. Auto insurance companies often offer a grace period for late car insurance payments, so a payment that's late by a few days shouldn't be a problem.
Even if you intend to find a new car insurance company, not making the payments completely could result in a poor payment history and make it difficult to find affordable rates. Yes, you can cancel a dealer's term insurance by contacting the dealer or insurance company the dealer works with and requesting the cancellation of your policy. If you move to another state where your current insurance company doesn't offer coverage, you'll need to get a policy from an auto insurer that offers coverage in your new location. If you don't notify your insurer of your decision to cancel your insurance and stop paying your premiums, they will continue to send you bills.
If you need to cancel your car insurance policy, the Bankrate guide can help you take the necessary steps to do so.