Car Insurance Cancellation Process in CA? – (2018)
So you need cheap car insurance but still have an active policy, what to do?
This is actually a common practice in the industry every day.
So regardless if you live in Fullerton CA, or Orange County CA, the process is the same.
Just as there are tens of thousands of people shopping for protection.
There are also those same high numbers of cancellations going on.
Car Insurance Companies – Reasons to Leave?
There may be many reasons why you may need to terminate your automobile policy.
For example, you might have received an increase in premium for your renewal policy.
Instead of continuing coverage, you take to the phones or internet in hopes of something cheaper.
This is a very common reaction.
Why would you continue to pay more if you have not been in any accidents or received any tickets in that term.
From an insured’s perspective, it’s time to leave. Find an insurance company that will reward you with a good driver car insurance policy.
These policies are filled with a variety of discounts. The good driver discount is one of the biggest however.
Other reasons to cancel
There could be a number of reasons for cancellation such as:
- a job transfer out of state,
- no longer driving,
- found a better insurance rate,
- laid off, no money to continue coverage,
- underwriting cancels policy,
- bad service,
- bad experience,
- too expensive,
- relationship, agent rapport,
- and on, and on, as you can imagine.
One of the above reasons may be why you are searching the internet for information.
You may need to cancel your current auto policy, for whatever reason, and need to know how the actual process works.
Great, you have landed on the format of this process. It is also located in your policy packet.
Let’s begin with the outline of the process.
Car Insurance Clause
There is actually a clause in your car insurance policy for this process.
- Policy cancellation, non renewal and California An amendment endorsement is the actual name of it.
- Make sure to review your specific carrier policy guidelines.
- Each company will have different insuring agreements and cancellation polices.
The cancellation and non renewal condition that is a policy form.
In this form, it will state the circumstances under which a policy can cancel.
The reason for the cancellation, the time notices required, the procedures are policy parts.
If you are entering into a legal contract such as insurance, you need a written request to cancel it.
This is required regardless if buy car insurance Fullerton ca or in Riverside county.
So, there is a standard format to this process, no matter where you buy it from.
A written request to cancel your personal policy is required. This is for your protection.
Can you imagine if anyone could just call an insurance company and cancel it over the phone, no signatures, nothing, but just a verbal.
You can understand with this imagery why companies and carriers will require this request or any policy change request to be done in writing.
After you read through your policy conditions, make sure to understand your obligations.
Yes, as an insured, you have a responsibility to do certain steps to get things processed.
For example, if you wanted to cancel your contract, you would need to do this in writing.
This is to protect you in case someone posing as you would have a paper trail.
This is reason why your carrier will want you to sign a cancellation request form.
The next question you might have is will a fee to process this request apply. The answer in most cases is yes.
An early termination fee applies if your policy is active and you want to end before it expires.
You can look at fees from 50 to 100 dollars. Makes sure you ask your provider about this fee before you buy the policy.
It makes sense to ask if you are only looking to get legal or do a DMV service.
If you know beforehand that you need a few days of coverage, your best bet would to keep the policy active.
The reason behind this is because if a fee is going to be that price range of coverage.
It means, it would be more affordable to just keep your policy until the next payment.
At this point, if you decide to not make your next payment, then your policy would cancel due to non payment.
You avoid any fees and had protection at the same time.
In some cases, you may only need the card showing proof.
In this case, make sure you are not paying a huge down payment.
If you are paying huge fees that are not refundable, than you are losing more money out of pocket.
There is a protocol to start the termination process.
You must submit in writing, a request to cancel your policy.
Like mentioned above, this will protect you against any identity fraud.
Identity Theft and Fraud
With identity theft on the rise, coverage is another transaction that has seen an impact.
So, not to go into a lengthy discussion about identity theft, you can understand why it’s in writing.
Once you submit this request, it will go through the process.
This process can take days to weeks to complete.
If you have any unearned premium on file, you will receive a check in the mail for it.
Policy Car Insurance Formula
Each auto insurance company has a formula for this pro rata calculation.
A simple example is, you just bought your policy a few days ago.
Your down payment on your policy covered your first 3o days or month.
The time you used your coverage to the time you request to cancel is the equation.
This amount minus any non refundable fees is what you will get back.
Your agent or broker will not have a specific amount if you contact them.
It is not like shopping at a Target Store or Walmart.
Commodity versus Product
Again, this is a coverage and not just a product. There are procedures and polices in place to protect you.
A lot times people feel these extra steps are time consuming and problematic.
This is in part due to this fast paced society we now live in.
Buying coverage for your vehicle is not like buying a fast food meal. Many components go into the process.
Don’t forget it is a legal binding contract and not a commodity.
Write it Down
On a closing note, always do everything in writing. Whether you are buying a home or boat, do it in writing.
Policy changes should always have paper trail. You want to make sure that there is no dispute if a claim should occur.
For example, there was a case where an insured signed the business exclusion form.
An accident happened and the insured was driving clients in the vehicle.
Insurance Claim of Denial
The insured put a claim in. This claim was not only denied but an investigation opened up.
It depends on each individual company, but fraud has harsh consequences.
Just remember, carriers have large departments that do nothing but investigate fraudulent claims.
- Jail time, legal fees are a few of the consequences you may face if you commit fraud.
- These cases are also turned over to government agencies. It is a serious crime to commit so don’t do it.
- Even if you think there is no way they will find out, yes they will.
- Remember, claims departments have teams of people who do nothing but this, investigate.
Track Record for Car Insurance
Carriers also have a system or database that keeps all your past claim and loss history.
Fraud is another factor that is reported in this system.
There are many providers that will not accept you if you have this mark against you.
- You may have to look for coverage in another market completely.
- This means your traditional means will not work when shopping for coverage.
- You may have to find a high risk provider who will accept such a ding on your record.
- So, having said all this, bottom line, it’s not worth it.
An Honest Approach to Fullerton Auto Insurance
A great quote once heard from a former salesperson was, if it goes in crooked, it will come out crooked. Just remember this philosophy not just in buying protection, but also in life in general.
This a good practice to always enter any agreement in a honest manner.
You can have peace of mind when you lay your head on the pillow.
That is worth so much more in the long run.
Not all auto insurance broker near me providers are the same.
Education is key and comparing lowest liability car insurance programs is a must.
You need the right information to make the best decision.
This process should be easy and affordable. Service is a priority and helping people stay protected is our top concern.
Comparing coverage and price is important.
If you need help finding a special policy feature or cheapest SR22 Insurance, contact us.
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