What you need to do before you cancel your auto insurance, dealing with the left over billing and finally cancelling your policy.

Before cancelling your old policy, get new coverage in place.

Regardless of how long you have been with an insurance company, there comes a time that it is just better to say goodbye and to part ways. It could be because you are tired of paying such high insurance premiums.

It’s possible that the customer service you have had to deal with recently is not exactly friendly. No matter what your reason may be, you are not obligated to stay with your insurance company. But, before you cancel your policy for greener insurance pastures, there are certain steps in how to cancel auto insurance.

Shop Around Before you Cancel

If you are getting ready to blow a fuse due to the conversation that you are in the middle of with one of your insurance company’s rude call center agents, summon all of the strength you have left and refrain from yelling out, “Cancel my policy right now!” Instead calmly finish the conversation, hang up the phone and immediately start shopping around for a new policy.

Have a copy of your policy in front of you so that when you are getting quotes you can make sure that you are getting the price for the same exact coverage that you have now. If you don’t know your coverages, you may be getting a cheaper quote from a different company because they are quoting for less coverage. Also ask around to friends to see who they are insured with and find out what their customer service and claims experience have been like with their companies.

Settle the Billing Before you Cancel

Go back to your insurance company or agency and find out how your billing is set up.  If you are a “full pay” customer, you are paid in full until your policy comes up for renewal. If you are on a “two pay plan” or a “monthly payment plan” your insurance could be paid up to any date of your current policy term. If your insurance company or agent cannot tell you exactly what day you are paid up until; at least find out if you are paying ahead or behind on your policy.

Knowing when you are paid up until will help you decide when to cancel your insurance policy. You can opt to have the new policy start when the old policy expires instead of renewing it or if you want to leave the company right now, knowing that you are paying behind will prepare you for getting a bill for coverage up to your cancellation date.

Replacing Coverage Before Cancelling

Go back to the new insurance company that you decided to go with and purchase your new policy. You have now decided when you want it to start and you are ready to get it in place. This is a very important step as most states will track when you have cancelled your insurance and you can be fined or lose your license if you don’t get a policy to replace the one you have. By doing this all in advance you will save yourself the trouble of any of this happen.

Finally Cancelling Auto Insurance

Once your new policy is in place, contact your old insurance company and let them know that you want to cancel your policy and when. Most companies will cancel your policy for you over the phone, but some will require that you visit your insurance agent and sign cancellation papers. No matter what they require, just follow the directions that they give you and move on. It’s that simple.

What is the definition of “full coverage”, should you drop it on an old car and what old cars should you drop it from.

It would be a good idea NOT to carry full coverage on this hunk of metal.

Sometimes there are investments that you make that are just not financially sound and having full coverage on an old car may be one of them.  Cars start losing their value as soon as you drive them off of the lot and the value just continues to decline from there.

There is a point in a car’s life that the cost to repair any damages that may happen to it actually exceeds the worth of the vehicle itself and when a car gets that old it may be time to stop paying for full insurance coverage.

What do you Mean “Full Coverage”?

When you hear people in the insurance industry talking about “full coverage” what they are talking about is the combination of your liability coverage and the property damage coverage for your own vehicle (comprehensive and collision).  So when some someone tells you that it may be not worth having full coverage on your old vehicle, they mean that it may not be worth having the Comprehensive and Collision coverage.  They are not telling you to cancel your whole insurance policy as you still need your Liability insurance no matter how old your vehicle may be.

Why Should I Drop Full Coverage?

When a vehicle is in a car accident the insurance company will compare the value of the vehicle to the amount of money it will cost to repair the damages to the vehicle.  If the cost of the damages exceeds a certain percentage of the value of the vehicle the insurance company will deem the vehicle a total loss and will pay you for the value of the vehicle. No matter how much you pay in insurance premiums for your vehicle the insurance company will never pay out more than the value of your vehicle (don’t forget they also subtract your deductible from this amount).

So if the value of your old vehicle is not very much, you need to sit down and compare how much you are paying in insurance premiums to keep Comprehensive and Collision coverage on you vehicle, to how much your vehicle is worth.

If the premiums exceed the value of your vehicle it may be a better financial decision for you to drop the full coverage and put what you would be paying for that premium in a savings account.  Then if you are ever in an accident you will have cash set aside to pay for the damages to your vehicle or for a down payment on a new car if your old vehicle is totaled.

By putting what you would be paying in premiums into a savings account, you are not only saving more money by keeping it instead of paying an insurance company more in premiums than what they are going to pay out for your vehicle, you will also be earning interest on this money.

Should Full Coverage be Dropped on All Old Vehicles?

Short answer: no. Full coverage should not be dropped on all old vehicles.  The age of the vehicle should not be the reason that you drop full coverage on a vehicle, but the value of the vehicle should be.   The reason that people refer to old cars not needing full coverage is that as the older a vehicle gets the less that it is worth.

The exception to this is classic cars.  Classic cars are vehicles that are so old that people start collecting them and restoring them back to the point that the vehicles value is increased.  These types of cars need to have full coverage on them to protect the money that has been invested in their restoration.

What Happens if I Drop Full Coverage on my Old Car?

If you drop full coverage on your vehicle your insurance company will not pay for any damages that you may have to your vehicle in the case of an accident.  This also includes damages caused by hitting an deer or any damages to your windshield as you will also no longer have Comprehensive coverage.

This means that you will have to pay for the damages out of your pocket and if you didn’t put aside the money that you had saved from dropping the full coverage on your vehicle, you may have to drive around a damaged vehicle or be completely without a vehicle if the car was totaled.

What to do after hitting a deer, car insurance coverage that fixes the damage, and how to prevent it in the first place.

Comprehensive coverage will repair the damages to your car if you hit this deer.

Between 2005 and 2008 the National Highway Traffic Safety Administration estimated that there were about 275,000 accidents in the United States that involved a vehicle hitting a deer.

Deer are fast and are easily hidden in the trees so they are hard to see until you are just about to come in contact with them.  So if you do hit a deer what do you do and is there any way of preventing it from happening in the first place?

Or more importantly, does car insurance cover hitting a deer?

What to do After Hitting a Deer

Once you have hit the deer pull over to the side of the road to make sure that everyone in your vehicle is okay and then call 911. Do not try to move the deer out of road or you could be hit by a car yourself. You also never know when a deer is actually dead or just stunned and if you try to move them and they are only stunned they may end up injuring you if they wake up.

Never take the deer home with you!  This is considered poaching in most states, especially if you do not have a hunting license and it is not deer season.  If you want to take the deer home as a trophy and are caught you will be slapped with a huge fine, lose your hunting privileges and Fish and Game will seize your trophy.  It’s just not worth the risk.

What Insurance Covers Hitting a Deer

Even though you have had a “collision” with a deer it is actually your comprehensive insurance that will cover the damages to your vehicle, not your Collision coverage. This is good news for most as this also means that you will only have to pay your Comprehensive deductible and most people carry a lower Comprehensive deductible than they do Collision deductible. Other coverages may also be available for you in this case, like towing and rental car coverage, but only if you purchased these coverages on your policy in advance.

Tips to Decrease your Chances of Hitting a Deer

An accident involving hitting a deer is just something cannot be avoided most times, but here are some ideas that may at least decrease your chances of hitting one:

• If you can, do not drive after sunset.  Deer are out in the highest numbers at night.  Also combine this with the interference in vision from the setting sun and the lack of light at night and your chance of getting into an accident with a deer increases.
• Don’t assume that it is only the one deer.  Most deer travel in herds so keep on the lookout for more.
• If a deer is running alongside your vehicle, get in front of it to prevent it from having the chance to jump out on the road in front of you.
• If the vehicles in front of you are slowing down keep an eye out for what they are slowing down for.

What covers a hit and run accident on your insurance policy, and steps to take if you’re a victim in a hit-and-run accident.

How to drop car insurance, dropping a car you’re no longer driving, switching companies, and what to do if there’s a problem.

When this happens, it's time to drop your car insurance.

Much is written on how to get car insurance in the most expensive manner possible. However, little is out there on when to drop car insurance, and how to do it.

It’s a relatively simple process, but it’s not always straightforward. The most important part about dropping car insurance is to keep good records.

How to Drop Car insurance

Logically, the main reason to drop car insurance is when you’re no longer driving the car in question. This can be for any number of reasons including you’ve sold or otherwise transferred ownership of the car, if the car is no longer driveable due to a prior accident. The other reason to drop car insurance is if you’re switching companies. What you don’t want to do is simply assume your insurance will cancel itself. You have to be proactive.

Car insurance is typically paid 30 to 45 days in advance. By simply letting your coverage lapse, you’re effectively covering a car you’re not driving for that period of time. Regardless of whether you have a personal or commercial policy, you want to let your agent and company know of the change ASAP.

Dropping Insurance on a Car You’re No Longer Driving

When dropping car insurance, make sure you inform your agent of the make, model and VIN of the car in question so it matches up with his or her records. Tell them the exact date you wish to no longer cover the car as well so you can be refunded correctly. Agents add and drop vehicles all the time, so don’t feel like you’re putting them out with your request — after all, it’s their job.

If your car is totaled in an accident it may (and should be) be dropped automatically, but don’t simply assume it is. Consult with your agent to be sure. Also make sure that any other vehicles you have stay on the policy. It’s a good idea to review your coverages periodically even if you don’t have any problems or changes.

Changing Companies

In an instance where recent car insurance advertising campaigns actually speak the whole truth, car insurance indeed does not have to be canceled at renewal. You have the right to cancel at any time for any reason or for no reason at all. To that end if you find a better deal, there’s no reason not to go for it.

Canceling mid-term can be a bit messy, however. You won’t get a refund on your unpaid premium from your old company right away, but your new company will expect its startup premium right away. Be sure you have enough to compensate for this

If You Have Problems

If you find your agent is unresponsive to your car insurance cancellation requests you can contact the company directly. If necessary you can fill out the consumer sections of an “Acord Cancellation Request/Policy Release” form and present it to the company. This form is a generic insurance cancellation form all companies and most agents are familiar with. Failing that, you should take the matter to your state insurance commission, however that should be an extremely rare occurrence.