A car insurance policy provides coverage for vehicle damage and bodily injuries to a third party plus provides cover for own damage. A comprehensive insurance policy ensures you complete coverage. Buying a Car insurance policy is essential, but there are instances when you may have to cancel the policy.
Well, the question is really majestic but somehow in fact people looking to cancel their insurance policy are not satisfied with insurer company efforts, and sometimes they allegedly blame that insurance companies are not even helping them as they think they deserve. People are just trying to say that, sometimes it feels like that insurance company has 2 faces. When you buy a car they just keep pushing us to buy a car but after some time it feels like we’re a burden on them.
Well, we can’t change certain things and having an insurer car is necessary for India and we can’t take it easy because of recently improved traffic rules and their penalty amount.
Wanting your car insurance cancellation is not a bad option but you have checked the reason, and circumstances first.
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When You Want to Cancel Car Insurance Policy
Following are the conditions when you want to cancel the car insurance policy.
Selling Your Car
If you are selling your car, you have the option of transferring the existing insurance policy or canceling the policy and then buying a new policy, thereafter. If you choose to cancel the policy, you can get the due refunds, provided the policy is not elapsed.
Car Stolen
In an unfortunate situation, when your car is stolen, it’s obvious that you want to cancel the policy. In case, you have paid the premium recently, you can go for a refund of the car insurance premium. If you have a comprehensive cover, you can make a theft claim on the insurance company and they will pay you the Insured’s Declared Value.
After processing the claim request, you may ask the insurer for the cancellation of the policy.
Car is Too Old
If your car is too old and its condition is so bad that you don’t like to drive it, then it is of no use to continue with the car insurance policy. You may dump the car and ask the insurer to cancel the policy.
Traveling Abroad
If you are shifting to another country for the long term, it would be of no use to continue with the insurance cover for your car. In this situation, you may request your insurance company for cancelling the policy.
Disappointed with the Current Insurer
There are instances when you are not satisfied with your current insurer because of their services or other reason. In this scenario, you may need to cancel the policy and buy a new policy from another insurer.
Moreover, you are free to cancel your insurance policy and opt for a new one, as it is mandatory to have an insurance policy on the legal ground.
When you buy a policy, you have a free look period, during which you can assess the policy terms and if unhappy, you may cancel the policy. The free look period is usually 14 days, but it may also differ from one insurer to the other. In case, you decide to cancel the policy after the completion of this period, the insurance company will deduct a percentage of the car insurance premium, depending on the terms specified.
Process of Cancelling a Policy
Now, if you are looking to cancel your car insurance policy, it’s essential for you to know about its process.
Firstly, you need to inform the company about the cancellation of the policy. It takes about 7 to 15 days to complete the cancellation.
The insurance company will help you in canceling the policy. Usually, car insurance companies ask you to write a mail or letter regarding your intention to cancel the insurance policy. You will be informed about the documents to be provided for processing the request. You may be required to provide a signed declaration, authorizing the insurer to cancel the policy.
Upon cancellation of the policy, the insurance company will send you a letter about its confirmation. The company will adjust the charges in the premium paid and then refund the remaining amount.
As it is mandatory to have an insurance policy for your car, it is also essential to get a new policy, else you may be charged for uninsured driving.
Read our article “Compare Car Insurance Policy” for understanding more about Car insurance in India.
Conclusion
A car insurance policy provides cover for a third-party liability plus own damage cover. In this article, we have covered the situations, in case you need to cancel the policy. You will also know about the procedure for the annulment of the policy. It is also recommended to read through the insurer’s procedure for canceling the policy, so you can get the policy canceled with ease.
After the cancellation of an insurance policy, it is advisable to get a replacement policy for your car. If you don’t buy a new policy immediately, you are exposed to penalties for driving uninsured, third-party liability, or a higher premium for buying a policy in the future.