Cancel insurance

abkdt41

abkdt41

Well-known member
Is it possible to cancel insurance on a vehicle? If the vehicle needs costly repairs that the owner can't afford at the moment, is he able to cancel or suspend insurance?

I know when getting a new policy most companies ask if an insurer has canceled a policy within the last x numbers of years, and this usually has a negative impact on premiums. Is it the same case if the insuree cancels the policy.

Sent from my Nexus 5 using Tapatalk
 
You can cancel it but if its at the garage they'll need to know and may need to put it on the road to test repairs. Also you can cancel but some want to keep a percentage of the year end insurance fee.

You cancelling your insurance does not affect future insurance, that's only if the insurance company cancels your policy, which they would only do if say you signup for statefarm and tell them never had tickets despite it not going to court yet, then they later find out and cancel your policy while keeping the money.
 
XenoVibe said:
You can cancel it but if its at the garage they'll need to know and may need to put it on the road to test repairs. Also you can cancel but some want to keep a percentage of the year end insurance fee.

You cancelling your insurance does not affect future insurance, that's only if the insurance company cancels your policy, which they would only do if say you signup for statefarm and tell them never had tickets despite it not going to court yet, then they later find out and cancel your policy while keeping the money.
Click to expand...

Insurer ask if you have had any convictions you can have 10 tickets awaiting trial you are NOT obligated to reveal that at the time to insurance. If you beat all the tickets then you still have a clean driving record. So it is convictions that count not tickets. The ONLY way State Farm could "legally" keep your money and cancel policy is after conviction you don't advise them, (on a conviction which would change your level of risk). You obligated to inform them of ALL tickets but if you forgot a "minor" conviction, (unless it is your 4th one in the last 12 months..lol Then they aren't likely to cancel policy but they will increase your premiums. If you "forgot" to report say a HTA 172 then they WOULD drop you

If the vehicle is just sitting awaiting repairs then you can just leave comprehensive and theft on it, (although if someone steals it if it is in that bad of shape they deserve it)..lol By keeping minimal coverage your premiums will be dramatically reduced and you avoid any possible penalties.

As Vibe said you can cancel policy without future penalty. Think of it... if you sold a vehicle would you continue to insure it until policy expired???
 
The insurance companies care if they cancel the policy, they don't care if you do.

Keeping comprehensive on it isn't a bad plan, but most insurance companies won't allow just comp on a bike, they require liability too.

You may owe or get a cheque depending on how your policy is structured, see vifferfun's posts on premiums used vs paid.
 
Most of the insurance policies are a contract for 1 year. If you cancel the policy mid-term (for any reason), the insurance company will charge a penalty - usually one month's premium. If you are going to ride again within the year, it is better to switch the insurance just to 'comprehensive' coverage (no penalty & minimum premium) rather than cancelling the whole policy.
 
You must log in or register to reply here.
Back
Top Bottom