Cancelling An Insurance Policy? Consider These Points Beforehand!

Are you thinking of switching to an insurance provider or cancelling your current insurance policy? There are some things you should consider before you cancel your insurance policy.

What should I do before I cancel my insurance policy?

It doesn't matter why or when you are considering cancelling your insurance policy. However, it is a good idea to review your policy to make sure your budget and needs continue to be met. Make sure you have all necessary information to complete your request for a quote or update your insurance policy.

Here are a few things you can consider:

Check your current needs
Your insurance coverage must reflect your current situation. If it's not current and up to date, your premium might not be as well. For instance, you could still pay for your son who was identified as a driver of your car, but has left and is no longer driving your vehicle. If this is the case, you can make the choice to delete the driver from your list of drivers that are occasionally in order to lower your monthly premium.
Also, examining the amount you're spending can help determine if you're making the right choice. For instance, if your car and home insurance policies were initially bundled and you're looking to end your auto insurance without the need to cancel your home's insurance, it's likely that the cost of your home insurance would increase if the insurer is offering you the "bundle-and-save discount".

You can go beyond the cost of the services
When you're shopping for new insurance policies, don't only look at the cost. Be sure that the insurance company you're considering is trustworthy and the policy includes benefits, deductibles, and levels of service that match your requirements.

The costs vs. savings
Certain insurance companies charge fees when an insurance policy is canceled prior the date for renewal. If cancellation fees are charged ensure that the savings you'd make by changing to a different insurance company outweigh the penalty. If it doesn’t happen, you might want to consider cancelling prior to the date of renewal for your insurance policy.

Is there a cancellation fee? What happens to my payments?

Every insurance company has its own cancellation rules. Make sure you are familiar with the rules of your current and future insurance provider. You won't be charged any penalty if your policy is cancelled. If you cancel your insurance policy before the renewal effective date you might be required to pay a fee. You must pay any remaining premium or penalty to your insurer according to the cancellation policy.

Would cancellation affect my insurance file?

You can cancel your insurance policy without affecting your insurance file or your chances of getting back to your current provider,  unless there is an outstanding balance, or if the Underwriting Department deems that there is a risk. Be aware, however, that not all insurance companies will consider your loyalty when rating you.

When can I cancel my existing insurance policy & how so?

You have the option to cancel or not renew your insurance policy at anytime during the coverage period. Follow the instructions provided by your insurance provider to cancel your insurance policy. When the process is complete, you will receive confirmation letters.

If you are making your mind to cancel or switch your insurance policy, it is firmly advised to get in touch with an insurance company that can provide you with right kind of support

For assistance, you can book a free consultation with A-Kan Insurance.