Cancelling your insurance, for whatever reason, is not as simple as you’d think. Sometimes, it’s complicated by the insurance company’s cancellation rules. Other times, it’s because you’ve never cancelled so much as a salad in favour of that double cheeseburger you really wanted. If that’s you, then go on and treat yourself. A burger is always worth cancelling a salad for (unless your doctor has ordered you to stick to the greens).
But enough about salad. Let’s get back to cancelling your car or home insurance. The thing about cancelling your insurance is that if you don’t do it right, you’ll be left paying for another month (which is a major pain if you’re cancelling to join another insurer). You could end up paying for 2 policies at the same time. There might also be some other fine print that you’re not aware of… And who knows what that could lead to!
What you need is a little guide to help you cancel your policy, leaving you with minimal to no backlash. Oh, and just to be super clear, these steps will help you cancel your short term insurance policy (like your car and home). Not your long-term insurance (like life insurance).
5 easy steps to cancel your existing insurance
Step 1
Get your policy number (or your ID number) and call your current insurer.
Step 2
Once you’ve identified yourself and the consultant has your policy open, tell them that you’d like to cancel your policy.
Step 3
This is when you’ll be asked why you want to cancel. Have your answer ready. For instance, if you’ve gotten cheaper cover then it’s good to tell them.
Step 4
Now, you’ll be asked about the premium that you were offered. (They’ll want to see if they can beat it.) It’s up to you to tell them or not. They might be able to bring your premium down, but you need to be careful. They might’ve raised your excess to offer you a lower premium.
And remember, you actually need to be able to afford to pay your excess if you claim. And if you’ve decided to switch to the insurer that offers premiums that decrease every single month (yep, they decrease your premium as your car’s value drops), then even if your current insurer can decrease your premium, it won’t be competitive for long… So it’s still not worth sticking around.
Step 5
Once you’ve made it clear that you’re cancelling, you can tell them what your last date of cover will be. If you’re switching to new insurance, then your last day will be before your cover starts with your new insurer.
A word about honesty
While insurance companies tend to keep the same rules (generally speaking)… Some are a little less honest than others and hide details in their overly stuffy insurance language. And if you don’t speak stuffy insurance language, then you won’t know.
The key is to ask (in plain English) if there are any clauses that could cause additional costs as a result of cancelling. If they say no, then make sure that you have a reference for the call so that, if something does go off on your account that you weren’t expecting, you have a way to talk to the insurer about their non-disclosure. Or else it could just be a case of ‘he said, she said’.
Of course, if you’re dealing with an insurer like that then you’re well shot of them and should look for cover that doesn’t delve in fine print and doesn’t hide anything from you. Like an insurer who speaks in normal English and makes a point of keeping things transparent.
Keen on joining that kind of insurer? Just click here and get a sensible, honest, and super affordable quote!