Cancel

An insurance contract can be stopped by the insurer giving you 15 days written notice of termination by registered letter or by five day's notice of termination if it is personally delivered to you.

You can stop your insurance contract by providing written notice to the insurer. You can provide this notice to your agent or broker. If you provide this written notice then the policy is cancelled as of that date. The paperwork may take a bit to get processed but as of that time the insurance is no longer in force and you would not have coverage if you have a claim.

You need to be concerned about a short-rate penalty when you cancel a policy. Not all companies will penalize you but it is best to check your situation before you proceed.

You must declare if you have been canceled or refused insurance by the insurance companies when you make application. This can affect your acceptability and also whether or not you will receive payment options.

One solution is for you to cancel your policy, thereby shortening the amount owing for time on risk and then make prompt payment of this outstanding to the insurer. You will protect your payment history by taking this step and giving the insurance company the premium due for the time that you had the insurance in a prompt manner.

There is no grace period on a cancellation. If you have cancelled your policy or been cancelled for a certain date then at 12:01 a.m. you will no longer have insurance. Depending on the type of insurance you had you will not be protected for a fire at your home or be able to drive your auto.

If you are facing a cancellation then you should discuss this with your agent or broker for how to best address your situation. It is your right to have this information - take control of your insurance.