Car Insurance Policy Cancellation - Issues to Avoid

There are numerous ways to cancel your car insurance policy. Before we elaborate on them, let’s discuss the reasons for cancelling the policy in the first place.

Reasons for Cancelling the Insurance Policy

The number one reason for cancelling the policy is that people find a better option. For example, you are paying a premium of AED 100 per month. Afterwards, you come across an insurance provider that offers the same policy at AED 75 per month. Naturally, you would opt for the latter provider. After all, who doesn't want to save their hard-earned money?

The second most common reason for cancelling a car insurance policy is poor customer service. At times, the insurance providers engage in delaying tactics to avoid payouts or do not resolve the policyholders’ complaints effectively. Dissatisfaction can quickly force a policyholder to try another insurance provider.

The third most common reason for cancelling a policy is that you are relocating to another state or country. Within a country, states can have different minimum requirements regarding automobile insurance. Therefore, a person might need to cancel the policy and get another one for the new city. Likewise, moving to another country will require you to take insurance from a company that operates there.

Irrespective of the reason for cancellation, the fact is that many people cancel their policies and get a new one. Next, we will guide you through the simplest way of cancelling the policy. Let us start.

Cancelling the Car Insurance Policy

Below, we will list the most straightforward way of cancelling the policy.

Step 1: Call your insurance provider.

Step 2: Ask them about the cancellation process.

Step 3: Follow the process. You might have to pay a specific fee for cancellation. The provider might also ask you to send back the certificate of motor insurance.

Step 4: Wait for a confirmation message, email, or letter stating that your policy is cancelled.

There are other ways to cancel the insurance policy. The second most common way to do so is through email. In the email, mention your registration number, also known as the policy number, and state that you want the policy cancelled right away. The provider might ask the reasons for doing so and provide you with a complete process for cancellation.

Don’ts of Cancellation

There are certain things that you need to keep in mind while cancelling your insurance policy. Consider that you live in an area where car insurance is mandatory. If the policy is cancelled and you take your vehicle out for a drive, you will be breaking the law. Therefore, always sign up for a new policy before cancelling the other one.

Similarly, address your concerns to the policy provider before cancellation. At times, the issue might be resolved through simple communication. For instance, if you feel that the provider mistreated you, a simple email or call to the company’s representative might help fix the issue. Therefore, always exhaust all possible options before cancelling the policy.

Lastly, we recommend going through the policy in detail. You might think that you are signed up for personal property coverage. In contrast, the policy expressly states that it does not. Most of the times, issues arise because customers do not read the policy before signing up for it. Afterwards, problems occur. So, reading the policy can help you avoid problems in the future.

Wrap Up

This concludes our article. We are confident that you are going to use the above information to your advantage. Remember, people working in insurance companies are also humans. They might make mistakes too. Therefore, before taking the drastic step of policy cancellation, try working out the issues first.