November 26, 2009
Canceling Your High-Performance Car Insurance
You probably have car insurance, and even if your car is high performance, there might be some reason to cancel that insurance policy. However, you’re going to want to make sure that you cancel it in the right way. Doing it wrong will end up hurting you, either financially or credit-wise.
It doesn’t matter what the reason is. You could be moving to another state, getting rid of your vehicle, or perhaps you just aren’t happy with the coverage that your provider is giving you. There are a number of things that you are going to need to understand so that your decision doesn’t end up coming back and haunting you.
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 assume, and many people do, that the policy will end when the term does, there are two things that are bound to happen, which are not in your favor. First of all, your insurer keeps billing you. The second thing is that when you fail to pay, your insurance will end. The only difference between it ending on a good note or a bad note, is how it affects your credit rating. If you fail to give notice, you will certainly have a negative mark on your your credit history.
Never assume that your cancellation will take place automatically. Insurance companies might be quick to tell you about the possibly cancellation of your high-performance car insurance if you don’t pay, but they definitely don’t tell you about the fallout of these actions. Always make sure you’re prepared, and always be safe rather than sorry. Make sure that you send in the notice!
A sudden cancellation will also raise what is known as a red flag when you are trying to get on with another insurance company. They’ll assume you are high risk, and they will charge a much higher premium. Cancellation notices are serious business.
Changing Insurance Carriers
If you wish to retain the same vehicle, but want to go to a different high-performance car insurance provider, then make sure that you have insurance the day your other insurance is canceled. You don’t want to end up in a car accident without insurance. This is never a good situation.
You might just have to get rid of that high-performance car insurance. You’ll have to have more than one reason, and you’ll have to do it right if you want to avoid ruining your credit. Always inform the provider and save yourself the trouble later on.
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