How Do I Cancel My Car Insurance?

Over the past few years, Canadians have undergone a lot of changes. Due to the pandemic, most of us were forced to work from home, and many of us later decided to stay home rather than commute.

You might be pondering whether you still require a car to the same extent after a reduction in commute time. Always investigate all of your choices before deciding to revoke your insurance. Carefully consider your options and consult with your insurance broker to better understand your position.

How To Cancel Your Insurance Policy?

If you decide to cancel your policy over the phone with your broker or insurer, it typically takes effect right away, according to finder.com. To avoid any fines or issues in the future, please make sure you request confirmation and written notice. Also, they advise completing these six actions to revoke your insurance:

• Contact your insurance provider: Inform your existing insurer that you wish to terminate. If not, you risk continuing to receive bills in the mail.
• Inquire about cancellation policies: Speak with an insurance broker to learn the proper procedures. While each provider has a different cancellation procedure, most need a letter of insurance cancellation.
• Inform your bank: If you have a car loan, you may need to inform your bank or the owner that you are changing policies.
• Stop automatic payments: Your insurer should stop automatically deducting premiums after processing your cancellation. However, you can still cancel payments from your account to ensure no additional fees are applied.
• Prepare your new insurance policy: If you plan to keep driving your automobile, arrange your new insurance policy before canceling to prevent a coverage gap.

Confirming that your insurance coverage won’t be interrupted is crucial when changing insurers. Your new one not being active is the last thing you want to learn. Never drive without insurance, even if there is a gap. If you are discovered and get into an accident, you will be subject to fines and harsh punishments.

What Information Do I Need To Cancel My Policy?    

1. Policy number
2. Information about the individual, such as name, birthdate, and Social Security number (SIN)
3. Your new insurance information, including the company, policy number, and date of effect
4. If you’re selling your car, provide evidence of plate forfeiture or a bill of sale.

Canceling Your Car Insurance

The first step is notifying your insurance broker or provider of your decision to discontinue your automobile insurance. Any payment will be repaid if you cancel your auto insurance before the commencement of your term.

Your insurance provider will charge you for each day your car was insured (also known as “time on risk”) after the policy’s commencement date, in addition to an administrative cost.

When Should I Cancel My Car Insurance If I’m Selling My Car?

You should terminate your insurance as of the date of the sale if you’re selling your car and not buying a replacement. Don’t terminate your coverage before the sale because the buyer might not buy if the damages aren’t remedied.

Moreover, your auto insurance cannot be transferred to the new owner. They must set up their insurance such that it goes into effect the day they purchase the vehicle.

After Making A Claim, Can I Cancel My Car Insurance?

Even if you have a claim on your auto insurance, you can still cancel it. However, you must pay the whole insurance premium until the termination date and an extra cost (if applicable).

Declining ALL claims on your new vehicle insurance application is crucial, considering a claim may impact your new policy. You do not want your new insurer to cancel your coverage for failing to disclose information or, worse, to surprise you with a higher auto insurance cost than what was quoted.

What Happens If My Insurer Cancels My Insurance?

Your auto insurance policy could be canceled by the insurance company occasionally. A cancellation before renewal, also called a “non-renewal,” is possible. This usually happen when you are no longer eligible for an insurance provider because of infractions, claims, the vehicles, or their use.

You might currently be in the market for high-risk auto insurance. An expert in high-risk auto insurance can assist you. If your track record improves, you might find that a high-risk insurance provider does not renew your policy, so you must acquire coverage via a regular auto insurance provider.

Compare And Save On Auto Insurance Premiums With Insurance Tiger

It’s possible that, despite cancellation fees, switching auto insurance providers could be the best option, especially if you’re looking for more affordable rates or savings from bundling auto and house insurance. If you live in Toronto or Scarborough, you might consider working with an auto insurance broker in Toronto to help you find the best coverage options.

Contact Insurance tiger support if you’re tired of paying too much to your present provider and are ready to switch. As a car insurance broker in Toronto and an insurance broker in Toronto, we specialize in finding the best rates for our clients. We can also help you find the right coverage for your needs, whether you need car insurance in Scarborough or anywhere else in the GTA. Our goal is to help you save money, so we’ll highlight the most attractive offers from multiple service providers in your area. With our help, you can find the best car insurance in Scarborough or Toronto while keeping your budget in check.