High-performance or not, the reasons you’d like to cancel insurance would fall along familiar lines. How to do it right remains the basic question those pondering a cancellation should do. If you don’t bother to do it by the book, cancelling your high-performance car insurance poses a potentially more damaging – financially or otherwise – repercussions.
Whether you are moving to a different state, junking your current ride altogether, or just not satisfied with your current provider, there are a few things you need to know so that it won’t come back and haunt you like a bad penny.
First off, there’s the issue of a formal notice. Regardless of what your policy says, it is always to your advantage to give you current high-performance car insurance provider written notice of cancellation stating clearly the date on which you’d like it to take effect. Standard policies allow you to terminate at any time as long as you give written notice. Note that your policy does not necessarily terminate at the end of your insurance term. What happens then?
If you incorrectly assume that your policy auto-terminates at the end of each term, two things will happen:
- Your insurer will continue to bill you for the next term’s premium.
- You don’t give notice; you simply fail to pay. Whether you give notice or not, the bottom line will be the same – your policy gets cancelled. The only difference in this case is, it goes on your credit report as a negative note.
It’s never safe to assume automatic cancellations. While insurance companies, even those specifically catering to your high-performance car insurance needs – may be quick to inform you your policy will automatically be cancelled if you don’t send payment for a new term, they never mention the repercussions of this course of action. Better safe than sorry. Send in that notice of cancellation.
A cancellation may also raise the red flag when your application is received by other companies. They might label you a high-risk credit to justify charging you higher premiums. So take cancellation notices seriously and do it within the specified timeframe to avoid these glitches in the future.
Switching Car Insurance Providers
If you are keeping and driving the same vehicle but switching high-performance car insurance providers, make sure your cancellation date coincides with the effective date (start date) of your new policy. You don’t want to be caught in an accident when you’re uninsured, would you? That would just go down in history as the most stupid thing any responsible adult could do.
Cancelling your high-performance car insurance may be inescapable. At some point, you’d find one or more reasons to want to cancel an existing policy. Just remember that to avoid any negative impact on you and your financial future, be considerate. Allow your insurance company enough period of notice and go through the process of making the termination official. It’s the only way you can avoid trouble from a cancellation, now or in the future.