How to cancel your car insurance policy and get a refund?

 

How to cancel your car insurance policy and get a refund?

This article provides detailed guidance on the cancellation of the car insurance policy. Read on to understand the steps related to canceling your car insurance policy and refunding the amount.

Buying car insurance is mandatory to drive your car legally in India. Insurance companies offer many policies that have different coverage options. In case you have purchased a policy that you think is not suitable for your car, you can still cancel the plan and recover the money. Read on to understand the steps involved in unlocking your car. 

Reasons to cancel your car insurance policy

People have different reasons to cancel their car insurance policy. Here's a list of the most common reasons why policyholders may want to cancel their car insurance policies-

Change of ownership of the car

Most car insurance policies have validity of up to a year. Those who have purchased a long-term car insurance policy will have an extended coverage period of about 5 years. In some cases, it happens that people may want to sell their cars and do so when they get a good deal. This is not always compatible with the policy period. Car owners will therefore have to cancel their car insurance policy to transfer ownership to someone else.

Switching to a new insurance company

Some people are dissatisfied with the insurance company's previous service or may have an unpleasant interaction that may bring them to look for a different insurance provider or company. This situation will bring the person concerned to cancel their existing insurance policy to securely switch to a new insurance company.

Unlock your car

Since different companies have different procedures for canceling insurance plans, there is no standard procedure or protocol. These are the basic guidelines that most insurance companies follow to cancel the car insurance policy -

Visit or contact your insurance company or service provider and inform them of your decision to cancel your car insurance plan. This can be done by contact or by email. The insurance provider will then contact you and guide you regarding the details of the cancellation process.

The insurance company will request certain documents based on why the car insurance policy has been cancelled. Make sure that all necessary documents are arranged and submitted at the said time.

Once the required documents are submitted, the insurance company will verify them and work on your cancellation request. The insurance company will only agree to cancel if your documents are valid.

If possible, you may receive a NCB certificate.

Car insurance can be cancelled online through the insurance company's official website or app. Some insurance companies offer an option to cancel insurance online through self-cancellation. Be sure to visit your website or app and follow the steps to cancel your policy. 

The process of getting a refund for your car insurance policy

The policyholder will be eligible for a refund when the car insurance policy is cancelled depending on the cancellation time and the terms and conditions of the policy. These are some common cases of policy repeal.

Cancel before the policy begins

In this scenario, the policyholder is likely to receive a full refund of his car insurance policy, but the company may charge a fee to process cancellations.

Cancellation after the start of the policy year

If you apply for cancellation after starting your insurance policy, the refund will be provided on a pro rata basis.

Take away

Insurance policies must be purchased carefully. Similarly, it's important to think about it if you plan to cancel your car insurance plan. Policyholders must be aware of the cancellation process to make an informed decision. If your car's insurance policy is cancelled, the transfer time depends on your payment process and should not take more than 14 working days. Make sure you buy the right insurance next time and drive safe!

Read also 

How to cancel your car insurance policy at any time?

Reasons to cancel RC after cancellation of an insured car

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.