Switching Insurance Companies 2 - November 27, 2008
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In changing insurance companies, you do not have to wait until renewal to do it. All car insurance policies have a provision which gives you the option to cancel your policy any time you wish. The best time to cancel your policy is before a new one has been renewed. Should you cancel in med cycle, the insurance company will compute your premium payment up till the time you canceled and give back the rest to you. But there are insurance providers that charge a cancellation or pre-termination fee. To cancel a policy, you need to put it in writing to inform your insurance company. Specify in your letter the exact date when you want it canceled so that your new insurance company can coincide the expiry date of your old policy with the start of the new one. It is not a good idea to just walk away from your old insurance company because chances are, they will cancel your policy for non payment of premiums – which will make it harder for you to get a new policy with lower premiums.