Things You Should Know About Car Insurance Policy Cancellation

Get Car Insurance starting at only ₹2,094/year #
Car Insurance
Processing

You can easily cancel your car insurance policy at any time; all you need to do is submit your replacement papers to inform your car insurance company. Whether you have to pay any charges; however, depends on when you cancel it. If you do it during the term of the insurance, the insurer may charge a nominal cost, from you. If you cancel it at any other time, the remaining premium amount will be reimbursed.. 

Read more

  • Renew policy in 2 minutes*

  • 20+ Insurers to choose

  • 1.2Cr+ Vehicles Insured

Car Insurance

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Get Car Insurance starting at only ₹2,094/year #
Looking for Car Insurance?
    Other models
    Other variants
    Select your variant
    View all variants
      Full Name
      Email
      Mobile No.
      Secure
      We don’t spam
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      Consequences of not Buying a New Car Insurance Policy Upon Cancellation

      In every state, it is mandatory to have your car insurance papers in place. It is a proof that you are covered for any accident or damage that may take place on road. Also, it gives third party insurance to cover damage caused to any third person from your vehicle. But if you do not have your new car insurance policy at the time of cancellation, you might have to face the following circumstances -

      • You can be fined or penalized for driving without car insurance
      • You will need to bear all the personal and accidental damage expenses. Also, you will not be given third party car insurance cover to save you from any legal or financial expenses incurring from the same.
      • If you delay it more, you would need to pay higher premium amount.

      Therefore, if you want to buy a new car insurance plan without facing any consequences, then you should take all the necessary steps to cancel it on time and buy new policy soon before that.

      Reasons why you Might Be Looking for Cancellation of Your Car Insurance Policy -

      You want to sell your car - In this case you would definitely need to end the old insurance policy, take the refunds and buy a new policy, which will offer you a better deal.

      Your car has been stolen - Hopefully, it will never happen to you. And if it does, you should certainly take up a new insurance policy for your new car. If your current policy is a comprehensive one, then you would be reimbursed for the theft, based on the IDV of your vehicle.  Once you get the sum assured or the claim amount, you can apply for the cancellation of your policy.

      Your car model is old - If you want to dump your car because it is an old model, then there is no point dragging your current insurance policy. You should definitely cancel it and look for a new policy, if you are going to buy a new car model.

      You are not happy with your current insurance company - Though, it doesn’t happen much, but there are times when you may not be satisfied with your current insurance company. The reasons can be higher premium amount, less sum assured, more waiting period, stringent renewal process and so on.  Thus, you must look for a new car insurance plan for a hassle free experience.

      Process of Cancelling Your Car Insurance Policy -

      Update your insurance company immediately - You need to inform your car insurance company on an immediate basis or as soon as you decide to go for cancellation of your car insurance policy. This will allow your insurer to begin the cancellation process and carry out necessary formalities within a week or two.

      Follow the guidelines laid down by your insurer - The process will vary, depending on the insurance company you have taken the policy from. As a part of the cancellation process, your insurer can ask for your signature on the cancellation documents or the declaration form, giving you approval on the policy cancellation. Some companies prefer to do it via email, or via a letter from the policy holder.  After this, you will receive the cancellation letter from your insurer, mentioning the amount refundable to you.

      Ask for your car insurance certificate - It is imperative to ask your insurance company to return your car insurance policy papers, which you submitted to them for cancellation process. It is mandatory to have them when you are buying a new car insurance policy and to avail your No Claim Bonus.

      Check your refund status before the culmination of policy - Before your policy lapses, it is recommended that you ask for a refund from your insurance service provider. It’s your insurer’s liability to pay you the refund, if you have already paid the annual premium. The amount won’t be refunded, if there is sudden demise of the policyholder or the policy is terminated due to some unforeseen calamities. Ensure that you get the refund amount transferred to your bank account only.

      Buy a New Policy Immediately - As soon as you cancel your old policy, remember to purchase a new car insurance plan, especially if you do not want to bear any penalties. If there is any loss or damage to your vehicle, due to any accident or some other unforeseen circumstances, then you might have to bear the cost of higher premium amount for unnecessary delay in buying the new policy.

      Conclusion:

      So, if you want to go for a cancellation of your car insurance policy and wish to go ahead with more economical one, or are getting a better deal from the competitor, make sure you take into consideration the cancellation process and requirements as mentioned above.

      Find similar car insurance quotes by body type

      Hatchback Sedan SUV MUV
      Search
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
       Why buy from policybazaar

      Car insurance articles

      Recent Articles
      Popular Articles
      Must-Have Car Insurance Addons for Brand New Cars

      31 Jan 2024

      Investing in a full-coverage car insurance policy is essential for
      Read more
      No Claim Bonus (NCB) in Car Insurance

      29 Jan 2024

      No Claim Bonus (NCB) is a reward given by an insurer to a
      Read more
      How to Choose the Right Car Insurance for Your First Car?

      17 Jan 2024

      Buying their first car is no less than a milestone unlocked for
      Read more
      Things To Know Before Purchasing Sedan Car Insurance

      12 Dec 2023

      The type of four-wheeler you purchase also impacts its insurance
      Read more
      Know About Full-Coverage Car Insurance

      11 Dec 2023

      You must have read or heard about the term “Full Coverage Car
      Read more
      Check Vehicle or Car Insurance Status/Validity Online
      It doesn’t matter if you are an excellent driver or take your car out only once in a few months; your car must be
      Read more
      Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
      Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
      Read more
      Find Car Insurance Details By Registration Number
      Sometimes, you may face situations when you need car insurance or vehicle owner details but cannot readily access
      Read more
      How to Transfer Car Insurance Policy?
      An integral part of selling a car for both the buyer and the seller is ensuring a successful car insurance transfer
      Read more
      Comprehensive Insurance Vs Third Party Insurance
      Comprehensive car insurance offers protection to the insured car against third-party liabilities and own damages due
      Read more

      top
      View Plans
      Close
      Download the Policybazaar app
      to manage all your insurance needs.
      INSTALL