It is easy to have misconceptions about cancelling your car insurance. So, you think you’re ready to cancel your auto insurance; Perhaps you’ve found a newer, more affordable premium. Or maybe it just wasn’t working out for you.
It’s totally normal to have misconceptions about cancelling your car insurance. You may also want to want to switch insurance policies for your auto coverage. At isure, we promise always to take you, the customer, and your best interests to heart. Nonetheless, there are a few myths out there about cancelling your auto insurance. We’re here to help debunk some of these misconceptions and lay out the facts about cancelling your policy
Here are some common misconceptions about cancelling your auto insurance:
“I don’t want to pay the large cancellation fee!”
Most customers are afraid of what they don’t know about insurance, especially when cancelling their auto insurance before the next renewal date. Most have a fear of a large cancellation fee looming in the back of their minds and would rather sit out a more expensive policy than cancel and change mid-term. In addition, most don’t know that the closer you are to your renewal, the lower the cancellation fee will be. As well, most fees are not large fees more than $500. Sometimes customers may even get a refund.
“I don’t want to pay the cancellation fee, so I’ll just wait until I renew to move over.”
As discussed above, the first thing a customer should do is find out how much it costs to cancel. If another company offers you a lower premium saving you hundreds or even a thousand dollars, why wait until renewal to start saving money? Take the cancellation fee and check it against the savings. If there are savings even after the cancellation fee, then you are still benefiting. Put that extra money in your pocket now, and don’t wait. Rates can change at any time, and at renewal, that premium may not be available.
“Does it look bad if I cancel my insurance, and will I be penalized with worse rates?”
No, a customer may cancel their insurance at any time, subject, of course, to the cancellation fee. However, when an insurance company cancels your policy, you may face negative consequences when attempting to secure insurance again.
“It takes too long, too much hassle, and I don’t want to send in all those forms again!”
One of the advantages of being an isure.ca client is that we already have all those documents and forms. Our insurance brokers will also make switching over to another insurance company as smooth as possible for you. In some cases, we can move you over to another one of our insurance companies with only a conversation.
“I spoke to my broker, and they gave me a better rate with another company. So how do I know if cancelling my insurance is the right choice?”
If you are provided with a lower rate, it’s simply a matter of adding up the costs of cancelling early and the costs of the new policy and weighing them against the savings on the premiums. Calculate how much you will save over the policy term on premiums alone and subtract from the early cancellation costs.
If you still come out ahead, then cancelling right away is the right choice. Start by using isure.ca’s Cancellation Calculator. Then, call your isure insurance broker, and they will guide you through the steps to cancel your existing policy and set up a new policy for an easy transition. Contact a member of our team today!