Cancelling Your Home or Auto Insurance Before The Renewal Date

Written By
This one was a team effort
Posted
May 4, 2020

So you are thinking about cancelling your current insurance policy before the renewal date…

I hope that means you love our prices, blogs, or cat pics and want to become a customer of Woop Insurance Agency!

Whether you are switching for a better deal or your current policy no longer fits your needs, we are here to help.

The good news is you are probably saving a boatload of money.

But before you switch, there are a couple of things you should know.

The Facts:

  • You can cancel your insurance policy at any time to replace it with a different insurance company
  • Insurance companies will refund the remaining balance of your policy in one of two ways
  • “Pro-Rata” refund is a refund proportionate to the rest of the time left on your policy. Typically, Pro-rata refunds only happen if there have been no claims during the policy year.  Pro-Rata is a good thing, this is the type of refund you want.
  • “Short-Rate” methodology provides a refund proportionate to the remainder of your policy and includes a penalty of about 10% of the return premium
  • Penalties, fees, and charges still might apply to each case
  • It is very important to make sure you have another insurance policy in place before fully cancelling your current insurance to prevent a lapse in coverage on your home or auto insurance.

So… how do you know what applies to you?

You should be able to look up fees and charges in the conditions section of your current policy, but that’s not the easiest thing in the world to do.

We made it a bit simpler and put together the following graph that looks at some of the largest home and or auto insurance companies in the US and identifies their cancellation policy.

How do I cancel my current insurance?

If you are one of our customers, we will do the heavy lifting. We will send you a cancellation form, get you the contact information for where to send it, and if needed, we will breakup for you.

If you are not a Woop customer, the first step is to contact your insurance agent or call your insurance company’s customer support line and they can direct you to the correct lines of communication. When contacting your insurance company make sure to have this information on hand: address, phone number, social security number, date of birth, driver’s license number, policy numbers, and the date you’d like your policy to end.

Some states require a written notice of cancellation and also require proof of another form of insurance to ensure you are never uninsured. If you are required to give a written notice, make sure to plan for mail delivery time so that you do not get charged an additional month of premium.

If you have any questions or need help, give us a call, or send us an email – we are always here to help.

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This one was a team effort
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