Have you shopped around and found a better price on insurance? You don’t have to wait until it’s time to renew to switch. Here’s a quick breakdown of how to cancel and how much it will cost (hint: it’s cheaper than you think).
Contact your broker or insurance company and let them know you plan to cancel. They may ask you to provide a request in writing to confirm your cancellation.
It helps to have the following information on hand:
- Insured’s name(s)
- Policy number
- Current insurance company name
- Cancellation date
TIP: Be sure to set up your new coverage before you cancel to make sure you’re always protected.
Your current insurance company will charge you a cancellation fee depending on how far along you’re in to your policy term. The closer you are to your policy renewal date, the less you’ll have to pay. But don’t be fooled, switching early won’t cost as much as you think.
Most insurance companies will charge you around 2-7% of your premium (usually they’ll take the higher percentage amount if you’re near the start of your term). On an average home policy of $800 a year the cost to cancel your policy would be around $16 to $56. For a renter, it would only cost around $9 to $18 to cancel.
Consider how much you will be saving by switching to your new insurer compared to the cost to cancel and the difference in premium left on your term. Depending on which one outweighs the other, you’ll know which choice to make.
Switching is easier (and cheaper) than you think. Find out how much it could cost you to switch today with our
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