Many people are misinformed about what they need to do to remove a vehicle from their insurance policy. It isn’t hard, but you have to be sure that you are removing the correct type of car, or else it can make your coverage too expensive for you.
There are many reasons one would wish to remove a car from their insurance policy. These include:
- Sale or trade-in. A new car was purchased, and the old one is no longer needed.
- Inheritance or gift of a car from another person not on your insurance policy.
- Divorce or separation. One partner may be taking off the other partner’s insurance policy or could have taken it off their own.
- Death of a joint-owner on your insurance policy.
- A change in employment that either causes or eliminates eligibility for lower rates.
Whatever the reason for removing a car from an insurance policy, you need to do it in the right way. If you remove the wrong item from your coverage, you might end up paying too much or even be denied coverage entirely.
How to Remove Car from Insurance Policy
Here is a guide on how to remove a vehicle from an insurance policy:
Removing your car from an insurance policy will depend on different circumstances. For example, if you own several cars and want to take one-off, all you need to do is contact your insurance provider and inform them that you no longer require the car on your policy.
However, if you own just a single vehicle that you intend to remove from your insurance policy, then there are some steps that you will need to follow:
Notify Your Insurance Company
To remove a car from an insurance policy, the first thing that you will need to do is notify your agent. Even if you own just a single vehicle and want to take it off your policy, you must always inform your insurance company that this is what you wish to do. You can also access your provider’s website or app and remove the vehicle yourself.
For insurance policies bought directly from your provider or with an agent acting on their behalf, you can notify them by phone or electronic means. However, some insurance companies prefer that you submit written notice to ensure the accuracy of the record. You would need to do this if any payments were made for the current month after you request the removal of a vehicle from your policy.
Check Your Current Coverage
Once you notify your insurer that you will no longer be using a vehicle on your insurance coverage, they will end the current policy and start a new one on the same day the old one would have finished. You can find out how much it will cost before taking the car off your insurance policy. This is important because if the cost of the new policy is too high, you may be unable to afford it.
The cost of additional insurance coverage will depend on many different factors, including:
- Type of vehicle you are insuring.
- Age and location of your car.
- Features included in your policy.
- The number of miles you drive each year.
Your next step is to compare the cost of your new policy with your current one and find out how much money you will save if the car is removed from your plan.
Cancel Your Current Policy
You will need to cancel your old one first to start a new insurance policy. If you have paid all your premiums for the year, you can terminate your policy at any time. Otherwise, it would help if you waited until your last compensation had been paid before canceling it.
When calling to cancel an insurance plan, be prepared with the name of the person who sold you your insurance coverage and ask them to confirm whether or not there are other payments that you have to make towards your policy. Do not cancel the procedure until you are sure that all outstanding payments have been made.
If you cannot speak with a representative, send them an email or letter asking for confirmation about the remaining payments and include their complete contact information in the message to help ensure that they are notified of your cancellation request.
Once you have canceled your policy, the termination will take effect at the end of your billing period. This means that any future premiums for insurance coverage will not be charged or paid. If you pay your provider by direct debit or credit card, they may attempt to charge for another month’s coverage after your cancellation request has been confirmed.
Unless you have contacted your insurance company to ensure that the car will be removed from your policy, they may assume it is still included in your plan. This is why you should contact them after canceling your current coverage and asking them again to remove the vehicle from your policy.
Notice of Insurance Termination
You are not legally obliged to notify anyone of your intentions to cancel your insurance policy. But, it can be helpful if you decide to do so as this may prevent a certain amount of confusion. You can send your company a letter or an email confirming that you have canceled the policy and that they must no longer include the car in any future procedures.