If, for whatever reason, you have decided to end your current car insurance and change it for another, you need to know what the deadline is for canceling the policy and the necessary steps to do it correctly. Only in this way will we get the insurance company to manage the cancellation of the insurance and we will avoid unwanted situations.
It must be taken into account that the Insurance Contract Law establishes that the renewal of the policy will be carried out automatically once the expiration date has arrived, which cannot exceed one year. In any case, the duration of the insurance contract must be specified in the policy contract itself.
Thus, to cancel car insurance, it is necessary to take this information as a basis and not wait until the last moment to notify the insurance company of our decision to cancel the policy.
Deadlines to cancel car insurance
In the event that you have decided not to renew the insurance with your current insurer, you must inform it one month before the end of the contract and the subsequent renewal. To know the exact date, you should review the contract where the conclusion of the current insurance period is indicated.
Since last January 1, 2016, this period has been set at one month, since previously it was mandatory to notify the cancellation two months before the end of the contract. This is reflected in article 22 of the Insurance Contract Law: “the parties may oppose the extension of the contract by means of a written notification to the other party, made with a period of at least one month in advance of the conclusion of the current insurance period when the person who opposes the extension is the policyholder”.
Although the term to cancel the car insurance has changed for the client, the insurance companies still have two months to notify the user of any modification that takes place in the policy before applying, such as an increase in the price of the premium , change in coverage, etc. Thus, the insured has two months from when the change in his insurance is notified to decide whether to accept the new conditions or, on the contrary, prefer to cancel the contract.
Another important point when canceling a policy, in addition to the term, is the way in which the company must be notified. It is best to do so in writing by fax, with acknowledgment of receipt or by registered letter. It is important to choose a medium that leaves a reliable record of the message of non-renewal of the policy, as well as the data of the insured, the insurance reference number and the date on which the notification is made.
If for any reason the term to cancel the insurance expires or you wish to do so before the expiration date of the contract arrives, the consequences and the requirements for this vary according to the company. In these cases, it is advisable to consult it in a personalized way with customer service, but under no circumstances is the solution to stop paying the bills. To avoid major problems, it is recommended to notify the insurer of the non-renewal of the policy following the legal steps.
How to cancel my car insurance?
Auto insurance is canceled by a letter addressed to the insurer. The letter must include the date, the policy number, the reason for cancellation and be signed by the policyholder.
If you contracted your policy through an Insurance Agent, the insurer will ask you to cancel it through said Agent.
The insurer will tell you the name and phone number of your Insurance Agent, if you do not have them.
Why do I have to cancel through my Insurance Agent?
the insurer does so to ensure that the customer understands the impact of such cancellation; The Agent will facilitate the process, and will provide expert help to the contracting party to process the cancellation.
When I cancel my car policy, do I get the premiums paid back?
When you cancel your auto insurance policy, you are entitled to receive any unearned premiums that have been paid. For example, if you made the annual payment and cancel after six months, you are entitled to receive half of the premiums paid.
Can I cancel all auto insurance?
All auto insurance can be cancelled, except mandatory ones, which by law cannot be cancelled. Auto insurance with a Preferred Beneficiary must include a cancellation authorization by the preferred beneficiary.
Is there any compulsory car insurance at the federal level?
Yes, it exists, it is the compulsory insurance to circulate on federal highways. This insurance only has Civil Liability coverage for $100,000 pesos.
