Cancelling insurance, what is involved?

[alho]

I am planning on cancelling my insurance with my current company in around June or May for a much cheaper rate. I was forced to get a new policy recently due to vehicle registration issues. Just wondering do insurance companies charge a penalty and how much? Or am I forced to stay with them and pay a ridiculous premium for a year?

Thanks!

[JonsMazda]

You can cancel anytime, no penalties.

[cwp_sedan]

You can cancel anytime, no penalties.

I think that all depends on the company, no? (penalty wise)

[mazdabetty]

I was pretty sure there were penalties to cancel through all insurance companies... guess not. I canceled mine just a few months in, it was just an admin fee I think, like $100 or something. Worked out to be way cheaper for me anyway cuz I'm saving $30/month with my new insurance company :P

[WeatherB]

I'm assuming you want to cancel before your renewal date, in which case there may be a penalty.

I know for my insurance company it depends on the reason for cancelling. If you are cancelling for example because you sold your car or they don't offer the coverage you need, then no penalty. Otherwise, yes, there is a penalty.

[JonsMazda]

I canceled my insurance with Belair, told them i'm returning the car, which at the end i did not. They canceled it no problem, no charge.

[n00bMeiSter]

I was pretty sure there were penalties to cancel through all insurance companies... guess not. I canceled mine just a few months in, it was just an admin fee I think, like $100 or something. Worked out to be way cheaper for me anyway cuz I'm saving $30/month with my new insurance company :P

You switched to Geico didn't you? LOL.


@OP - I think the penalty all depends on the company. When is your renewal date?

[sol_searchin]

Some companies charge penalties some don't. State farm does not, I know PAFCO/Kingsway do, like what was said it depend's on your company.

[alho]

You switched to Geico didn't you? LOL.


@OP - I think the penalty all depends on the company. When is your renewal date?

March cause they just made me go on a new policy and charging me ridiculous premium. The thing is insurance companies raise your premiums right when you get a ticket, but isn't willing to reduce it once it falls off... they make you wait till renewal. So I was planning on change to TD when my ticket comes off, and I will be paying around half of what I am paying now.

[jonjon72]

Was with the Personel before and wanted to cancel after they jacked up my rates. When I called they said I had to pay a fee. Looked at my policy and noticed that they don't cover modified vehicles. Called them up a few days later stating that I plan on installing lowering springs and they said that they won't be able to cover my policy. No charge and jumped over to Belair Direct!

[sol_searchin]

How is belair direct? I'm thinking of switching over to them