Want to Cancel Your Car Insurance?
Having car insurance is crucial if you drive a car, whether you’re just starting out or you’ve been driving for years. Third party (CTP) insurance is legally required for drivers anywhere in Australia, so you won’t want to cancel that unless you no longer own a vehicle or are switching to another insurer. However, many drivers also choose to purchase further car insurance coverage.
Car damage caused by an accident, theft, vandalism or fire may be extremely expensive, and car insurance cover is available for such instances if you choose to purchase it rather than cover all costs out of your own pocket.
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Why Cancel Your Car Insurance?
So long as you still drive a car, you may want to maintain a level of car insurance cover beyond that provided by your CTP. There are a number of reasons people think about cancelling their car insurance:
- To switch to a different insurer
- When selling or scrapping the insured vehicle
- When moving to a new area where the current insurer doesn’t provide coverage, or where the current policy is no longer adequate.
- When downgrading car insurance cover without switching insurers – this may be classed as a cancellation of the old level of cover with an immediate start of the new lower coverage car insurance policy.
- When the premium is beyond the policyholder’s budget
You may have decided to cancel your elective car insurance coverage, but make sure you’ve explored your options first. A car insurance comparison might yield new data that shows you one or more affordable and appropriate car insurance policies.
How to Cancel Your Car Insurance
Every insurer has a policy about when and how you can cancel your policy. Most of them display this information on their websites; if not, a simple call will get you the information you need. You always have the ability to cancel your policy, but depending on when you do it, there might be a penalty fee to pay or you may have to pay the remainder of the premium due for a certain period.
Don’t Just Stop Paying
Here’s how to cancel your car insurance:
- Call your insurer, or contact them through email. They will tell you their preferred method, but typically either one is fine.
- Follow the insurer’s cancellation policy. You may need to fill out a form.
- Find out if you get a refund. If you cancel early on in a policy, or cancel under an allowed circumstance that doesn’t incur a penalty, you may receive money back that you had paid for your premium. All insurance companies have a cooling off period during which, if you cancel the insurance policy, they may give you a full refund.
Car Insurance Comparison
If you haven’t looked at getting a new car insurance policy in a while, it may be time to compare car insurance quotes and see where you stand. If you’re close to the end of your current policy, you may be able to find something better and switch when your policy expires. Even if you’re only partway through your car insurance period, it may be that a lower premium might save you money long-term even if you did have to pay an early cancellation penalty fee.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
