Insurers can cancel policies or choose not to renew them at the end of the policy term. Non-renewal can occur after several accidents or after filing too many claims. At the same time, more immediate cancellations can be due to serious problems, such as loss of driving privileges or insurance fraud. Fortunately, many insurers are still accepting customers who have had their policy canceled or not renewed, but who are prepared to pay a higher rate.
If you decide to cancel your policy, have a copy of the bill of sale ready when you contact your insurance company. This will show that the car is no longer in your name and that you are not legally required to have insurance. Depending on your state, you may also need to notify your DMV after canceling an insurance policy. If you sell your car and no longer need coverage, your insurance company can send you a refund check if your policy is canceled before its term ends.
If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. Insurance refunds are usually issued through the same payment method that you use to pay for your insurance. If your car insurance company suspended you, it's still possible to get some type of insurance even after a serious violation, such as a DUI. If you decide to cancel your policy or your insurance company cancels it, you usually won't receive a refund from car insurance unless you've paid the premium in advance.
Yes, you can cancel your car insurance after selling it once you've transferred the title to the new owner, completed the bill of sale, and filed a notice of exemption from liability to your state's department of motor vehicles, if your state requires it. If you change your car insurance company and find better rates with another insurance company, you may want to cancel your current policy before it expires. If you're a new customer of Progressive, your auto insurance premium will increase after the first 6-month policy period if you file a claim or if traffic violations are added to your driving record during that time. The most common reasons why auto insurance isn't renewed vary by state and insurer and include multiple accidents and too many insurance claims.
Increases in auto insurance rates are often related to increases in the policyholder's insurance risk. Auto insurance companies can legally cancel a customer if it becomes riskier to insure them than when they first purchased their policy. The amount you have to pay to cancel Progressive insurance coverage depends on a few factors, such as the state laws where you live, the term of the policy, and how often you pay the premium. Many major insurance companies accept customers whose previous insurer didn't renew their policy.
You could be held legally and financially responsible for any accident involving your car while you're selling it, which means that it's in your best interest to maintain your insurance. Progressive offers insurance after a DUI if that person has a valid license and can drive legally. Depending on your insurance company, you may be able to cancel your policy by calling your insurer or agent.