There can be many reasons why you want to get rid of your insurance, but before doing so, you must consider some things.

Currently, having car insurance is mandatory throughout the country. However, there is the possibility that a situation may arise if you want to cancel a policy.

There can be many reasons, such as that you are not satisfied with the service, you sell your car, or you can no longer continue paying, but before cancelling it, you must know some things.

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To begin with, you must bear in mind that you will have to meet specific deadlines and obligations to terminate the relationship with your current insurer.

How to cancel auto insurance?

To cancel the auto insurance, you must have all the information corresponding to your auto policy, that you have paid for the service correctly and that you are the policyholder to request the cancellation through an agent.

What are the reasons why the policies are cancelled?

The first reason is that consumers find another company that can provide better benefits or adapt them to their needs.

It may also be possible that someone needs to cancel their auto insurance due to financial complications, such as being unemployed, especially in times like these, when the pandemic has generated one of the biggest economic crises.

Other common reasons for cancellation are:

• The change of vehicle owners.

• Total loss of the car.

• Customer dissatisfaction after an accident.

• The contract's expiration.

What is the process to cancel?

The process to cancel occurs through different channels, either by writing sent by mail or by phone calls.

Although you are about to complete the contracted period, and a renewal is on the horizon, it is essential that if you do not want to continue with your policy, you should contact your insurance company at least one month before reaching the agreed term. And indicate that you do not wish to continue with the contract.

It is very accurate that insurers do not allow the contracted car insurance to be cancelled. This happens when the insured car passes into the hands of another person, so the owner wishes to cancel his policy.

In most of these cases, the insured premium, as it is not required, will be lost automatically since your insurance company is in its free right not to return it since it is you who decided to cancel in advance.

There are three main reasons why you have the right to cancel the contracted car insurance, these are:

When your insurer modifies the price or the same coverage agreed within your policy; This situation does not usually happen often. When it happens, the company will give you 15 days to determine whether or not you accept this change, thus facilitating your cancellation.

If your insurance company reduces the premiums for the insured risks, which usually happens before the renewal period.

The last case is when hiring through the internet; that is, when carrying out the entire procedure through a web page, the insurers give 14 calendar days to cancel the contracted policy.

Remember that these same processes also apply in the case of car insurance for taxis and ERT insurance for Uber.

Suppose you want to end the relationship with your insurer on good terms before the contracted period. In that case, there are certain situations in which you can receive money that was not used. Also known as "unearned premium", which will appear when you make the sale of your car, having to cancel before the validity of your policy, this in some contracts will be stipulated as "early cancellation".

In some instances, the insurer will calculate by the exact knowledge of the amounts consumed or accrued up to the date the cancellation of the insurance will be made, returning the remaining amount.

In other cases, instead of cancelling car insurance, some want to reduce the coverage contracted. This situation allows you to request the difference from the previous amount, where the eliminated or reduced coverage will be included; many companies usually pay these differences to continue belonging to it.

Can an insurer cancel Auto Insurance?

You should know that not only do you have the right to cancel the auto insurance since also the insurer with which you are linked can carry out this process in advance, in case of:

For lying in a process, providing false information in the formats requested by the insurer or the intermediary. In these cases, the company may terminate the contract without prior notice.

By not indicating your actual date of birth, you will also be a victim of cancellation by your insurer since these events usually occur to reduce the cost of the policy.

By causing or suffering incidents that are not covered by your insurance, it can also influence the insurer of your car to choose to cancel, or they may require you to pay the difference.

Failure to pay within the established deadlines, issuing checks or payments without funds, is an action penalized by insurance companies to cancel a policy automatically.