Reader’s Question:
I’m not decided yet but I have plans on switching to another car insurance company. If I let my car insurance policy here California expire, will it automatically be canceled?
Lamont
San Diego, CA
If you just let your car insurance policy in California expire, that doesn’t mean that it will automatically be cancelled. Instead, your car insurance company will still send you a bill for the next policy term and if you don’t pay it, they will be the ones to cancel your policy. If this happens, you’re gonna have to pay more on your insurance if you switch companies because you have a cancellation on your record. Other car insurance companies will think that you are irresponsible, thus would put you in the higher risk category. In that case, they won’t take into account that much whether you have a good driving record or not. All they would see is that you have a cancellation on your insurance history.
To keep that away from happening, you need to formally cancel your car insurance policy. To do this, you may talk to your insurance agent or call your insurance company directly informing them about your intention to cancel and the date of cancellation. What they’ll do is send you a cancellation request form which is most likely already filled out and all it needs is your signature. But before signing, you have to read what’s on it very carefully and tell the insurance company if you have any objections. Even before you cancel your old policy, you’re always free to shop around the best car insurance by getting some free comparison auto insurance quotes.
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