Rancho Cucamonga, CA – (WiredPRNews.com) The latest of the frequently asked auto insurance coverage questions to be answered at OnlineAutoInsurance.com is How do I cancel my car insurance policy?
As the writers note, a car insurance policy is a contractual agreement between a driver and a coverage provider, and the policyholder should do everything he or she can to make sure that, in the event that coverage needs to be canceled, it is canceled properly.
It should not be assumed that simply stopping payment of premiums on a policy will simply terminate coverage without any negative repercussions. The provider of the canceled coverage may notify credit bureaus of the non-payment, which may leave a negative impression on future creditors as well as on future insurers, who may incorporate credit information into premium calculations.
Another important consideration for drivers leaving an insurer mid-policy is premium refunds. If either a policyholder or a provider cancels insurance, any unearned premium must be returned to the consumer. An unearned premium is premium paid that was paid in advance for a period during which the policyholder will no longer be covered. So, if a driver pays $600 for a six-month policy and cancels after the first month, he or she is owed around $500.
Consumers should note, though, that they might not receive their full unearned premium. This is because the provider may keep a set amount as a cancelation fee.
Motorists have a variety of reasons for canceling coverage. If it is because they are switching to a company with better prices or customer service, it’s important to make sure that a policy is already in place with a new coverage provider before the old one is canceled.
To access the latest and past FAQs, readers can go to http://www.onlineautoinsurance.com/learn/ where visitors will also find other informative resource pages as well as a quote-comparison generator that can help consumers track down the lowest rates quickly.
Online Auto Insurance, LLC
8667 Haven Ave Ste 100
Rancho Cucamonga, Ca 91730
Phone: (909) 912-1855