Every single motorist in Canada is required by law to acquire auto insurance. However, there are several circumstances in which you might need to cancel your auto insurance. For instance, your vehicle may have died or not be repairable, you may have to give up your vehicle or move provinces.
Your insurance company can handle any cause for cancelling your auto insurance. What if you’re currently in the middle of your coverage? If you’re terminating your auto insurance right now, it’s probably because your policy is about to be renewed. Let’s examine the penalties for cancelling your car insurance.
What Happens On Cancelling Car Insurance?
Even though you have the option to end your insurance policy, you ought to be conscious that doing so has the potential to have several consequences. For instance, while some insurers impose a termination fee, most do not. To avoid any unforeseen problems, it is an excellent idea to understand what your policy covers.
The majority of the time, the remaining prepaid premiums are refunded. You should follow your insurer’s cancelling procedure to guarantee a positive conclusion. Don’t make a wrong first impression if you intend to purchase insurance with the same company in the future.
Cancelling Car Insurance At Renewal
The optimal time to think about changing a policy is around renewal time. It’s quite often when people compare vehicle insurance rates from several companies. While avoiding possible charges or termination costs, it’s also an excellent opportunity to amend or cancel policies. Know that the team at Leibel Insurance will offer to compare for you so you don’t have to shop.
Cancelling Car Insurance Mid-policy
You may incur penalties and some other expenses if you cancel your insurance in the middle of its term. When offering your auto insurance, insurance companies policies are based on an entire year’s worth of premiums, as such, cancelling early does activate a cancellation charge.
Cancellation fines are based on the remaining duration of the policy. Your broker should be able to give you an approximate cost if you need to cancel early. For more information, your policy documents have a cancellation section.
Can Insurance Be Cancelled On A Leased or Financed Vehicle?
Although the state will legally permit you, your car loan won’t. Remember that a significant portion of a car’s value is lost due to depreciation. That implies that your vehicle will be worth less than what you pay for it after a year.
The price of the borrowed car you must now pay since it was written off will not be covered by the car insurance provider’s real cash value, which would be paid in the event of an accident. Leaving you with hundreds of dollars in unpaid vehicle loan balances and no car.
Get in touch with Leibel Insurance if you want to learn more about switching car insurance providers or seek guidance regarding your car insurance policy. Canada’s top-rated car insurance brokerage will guide you throughout the journey.