Insurers will generally reimburse you for the unused portion of your policy, assuming you paid in advance. However, depending on your state and the time of cancellation, your insurer may charge a cancellation fee. The cost of insurance changes if the term is reduced to less than the term of the original contract. When the deadline gets shorter, your monthly payments are no longer on schedule.
You can end up owing money even after your policy is canceled. There may be a fine that must be paid, as well as any other fees. If appropriate, the insurance company will reimburse you when you cancel your life insurance policy. However, this refund will be less than the total amount you paid on the policy.
If you move to another state where your current insurance company doesn't offer coverage, you'll need to get a policy from an auto insurer that offers coverage in your new location. If you need to cancel your car insurance policy, the Bankrate guide can help you take the necessary steps to do so. The fees associated with canceling your life insurance policy will vary depending on the type of policy and the insurer you work with. The insurance industry is highly regulated and every state has insurance statutes that govern how companies must handle reimbursements.
You may have to cancel your car insurance for a variety of reasons, but it's important to consider your plan beforehand so you don't have coverage. If you take a break from driving for an extended period of time, some car insurance companies will allow you to suspend your car insurance. If you are considering canceling your life insurance policy, you should contact your insurance company to discuss your options. Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results.
Even if you intend to find a new car insurance company, not making the payments completely could result in a poor payment history and make it difficult to find affordable rates. Many people decide to wait until the insurance renewal date before canceling their policy, because they want to avoid paying a penalty, but sometimes staying with the insurance company just to avoid a penalty isn't the best option. Talk to a licensed insurance agent to learn more about how driving your vehicle without insurance might affect you. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer.
If you cancel your life insurance policy, the insurance company will send you a check for the cash value of your policy. If you cancel your insurance policy instead of suspending it, your insurance company will likely view this interruption as a lapse in coverage and that your insurance premium will increase.