How to Cancel and Replace Car Insurance Coverage
On occasion, drivers find it necessary to switch auto insurance carriers. The policy switch may be due to poor customer service or better coverage with lower premiums.
Whatever the reason for switching auto insurance policies, there are a few things to think of before switching from the old auto insurance company to a new one.
For starters, make sure, without a doubt, that the new auto policy is bound and in force. Be sure to obtain written confirmation as proof that coverage is in effect. With today's technology, it is quick and easy for an insurance agent to fax or email proof of coverage.
Once the proof of auto insurance coverage is in hand, the next step is to request the old auto insurance company to cancel coverage. When requesting the cancellation, make sure to provide the old auto insurance carrier with the new insurance company name and policy number. Insurance companies are required, by law, to notify the Department of Motor Vehicles if there is a lapse in coverage. By providing the new auto insurance carrier's name and policy number, the old insurance company does not have to notify the DMV of a lapse or gap in coverage (such a gap in coverage can be costly to the policyholder).
Now that the new coverage is in effect and the old auto policy is canceled there are still a few bookkeeping and paper trails that must be taken care of. The amount of paperwork depends upon when the policy was replaced.
If the automobile insurance policy changed carriers at the end of the policy term, the paperwork is very much similar to a normal auto policy renewal. The policyholder must obtain new insurance ID cards, insurance policy and invoice for premium payment.
On occasion, drivers find it necessary to switch auto insurance carriers. The policy switch may be due to poor customer service or better coverage with lower premiums.
Whatever the reason for switching auto insurance policies, there are a few things to think of before switching from the old auto insurance company to a new one.
For starters, make sure, without a doubt, that the new auto policy is bound and in force. Be sure to obtain written confirmation as proof that coverage is in effect. With today's technology, it is quick and easy for an insurance agent to fax or email proof of coverage.
Once the proof of auto insurance coverage is in hand, the next step is to request the old auto insurance company to cancel coverage. When requesting the cancellation, make sure to provide the old auto insurance carrier with the new insurance company name and policy number. Insurance companies are required, by law, to notify the Department of Motor Vehicles if there is a lapse in coverage. By providing the new auto insurance carrier's name and policy number, the old insurance company does not have to notify the DMV of a lapse or gap in coverage (such a gap in coverage can be costly to the policyholder).
Now that the new coverage is in effect and the old auto policy is canceled there are still a few bookkeeping and paper trails that must be taken care of. The amount of paperwork depends upon when the policy was replaced.
If the automobile insurance policy changed carriers at the end of the policy term, the paperwork is very much similar to a normal auto policy renewal. The policyholder must obtain new insurance ID cards, insurance policy and invoice for premium payment.
I do also wanted to switch to another carrier but have heard that this process is really difficult. After reading information that you have shared I realized that its not very difficult as I was thinking. Thanks for posting what is the right way to do so.
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