First Time Ever Cancelling Auto Policy: how Does It Work?

[kellyfrost]

I am in the process of purchasing a new auto insurance policy. Once that policy is in force, I will be cancelling my current auto policy. I've never cancelled an auto policy before. What is the process? Do I call the agent and cancel over the phone or will I be submitting paperwork?
Also, any tips on what to say to the agent? I honestly feel bad and awkward. It's like I'm breaking up in a relationship. Love the agent and he has been nothing but helpful, but the current rates are too high and there is better coverage for lower rates out there.

If it matters: I'm cancelling All State moving to American National.

 

[TeePee]

Is your new policy with a *real* agent?

 

[kellyfrost]

Is your new policy with a *real* agent?

Yes. Real guy, has an office in an actual building, support staff, and website, social media, ect.

 

[TeePee]

Have him do it for you.

 

[hesse]

What he said ^^^^

give the new agent your policy info and dates. I think most agents like sending out cancelations

 

[AllstateMaine]

I am in the process of purchasing a new auto insurance policy. Once that policy is in force, I will be cancelling my current auto policy. I've never cancelled an auto policy before. What is the process? Do I call the agent and cancel over the phone or will I be submitting paperwork?
Also, any tips on what to say to the agent? I honestly feel bad and awkward. It's like I'm breaking up in a relationship. Love the agent and he has been nothing but helpful, but the current rates are too high and there is better coverage for lower rates out there.

If it matters: I'm cancelling All State moving to American National.

your new carrier should call Allstate for you to inform them of the termination. Allstate does this for their new business from other carriers. I haven't heard much about American National but at least they have a real agency and people.

 

[InsCommentary]

How do you know the coverage is better? Have you compared the coverages and exclusions between the policies page by page?

 

[kellyfrost]

How do you know the coverage is better? Have you compared the coverages and exclusions between the policies page by page?

I'm a pretty big insurance nerd, as I work in the industry so I did basically what you are describing as comparing coverages and exclusions closely. American National's home coverage is quite a bit more extensive. You can find a lot of info on their website or contact an agent and they can get you a copy of a policy for review. I'll give you a rough example of my policy limits, deductibles, and premium to give you an idea:

Old auto policy: 2 cars, 2 named drivers.
BI: 100,300
PD: 100
Collision/Comp: ACV $500 deductible
UM/UIM: 100,300
Towing/Rental: Did not purchase
Total premium for 6 month period: $750.51

Old home policy:
Dwelling/personal prop/ other structure: $2,000 all peril deductible
Liability: 300,000
Guest medical: 1,000
Waterback up: $5,000 $500 deductible
Additonal living exp: 24 months 23,738
Total premium:. $483.68

New auto:
BI: 250,500
PD: 100
UM/UIM: 250,500
Comp/coll: ACV, $500 deductible
Rental and towing: purchased
Accidental death: 5,000,10,000
Total premium for 6 month: $472.00

New home:
Dwelling, personal prop, other structure: $1,000 all peril deductible
Liab: $500k
Guest medical payment: 1,000
Additional living exp: 36 months, $59,375 (includes kennelling of pets)
Waterback up: $5,000, $1,000 deductible
Indentify Theft Protection: included
Home systems protection: $50k limit, $1k deductible
Service line system coverage: 50k limit; 1k deductible
Total premium: $620 annually.

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your new carrier should call Allstate for you to inform them of the termination. Allstate does this for their new business from other carriers. I haven't heard much about American National but at least they have a real agency and people.

Thanks for the response. the agent helped me take care of it today.
Have you heard of American National at all or just not much? I'm not sure what their presence in the Northeast is.
Yes they have real people as agents, which is great. All companies should.

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Have him do it for you.

Got it taken care of today. No awkward convo between me and my agent who has been very helpful.

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What he said ^^^^

give the new agent your policy info and dates. I think most agents like sending out cancelations

Don't know if he liked it, but he did it. I avoided the awkward convo I wasn't looking forward to.

 

[InsCommentary]

The listing of basic coverages and limits doesn't really reveal what is and isn't covered at the exclusionary level. For example, if I discovered extensive water damage inside a wall or in a crawl space that had occurred over many months, my HO policy covers that. MANY policies don't cover that. Nothing in the listing you posted tells me if that is a distinction between your two policies. A 4- or 5-figure uncovered loss can pay a lot of premium differential.

If you had a boomerang kid return home and drive your car, do both of these auto policies cover that? Some don't, including that of a major national advertiser unless the insurer is notified. The differences among auto policies at the exclusionary level are many and can be catastrophic.

But you indicated that you had done a comparison at that level, so that's good.

 

[kellyfrost]

The listing of basic coverages and limits doesn't really reveal what is and isn't covered at the exclusionary level. For example, if I discovered extensive water damage inside a wall or in a crawl space that had occurred over many months, my HO policy covers that. MANY policies don't cover that. Nothing in the listing you posted tells me if that is a distinction between your two policies. A 4- or 5-figure uncovered loss can pay a lot of premium differential.



If you had a boomerang kid return home and drive your car, do both of these auto policies cover that? Some don't, including that of a major national advertiser unless the insurer is notified. The differences among auto policies at the exclusionary level are many and can be catastrophic.

But you indicated that you had done a comparison at that level, so that's good.

I posted the basic coverages, limits, and deductibles as the simplest way to provide a comparison while typing on my cell phone. I think you would agree that it was somewhat beneficial to see those numbers and coverages as a framework.

Unfortunately, I do not have an electronic copy of the policies to attach to this post, nor am I going to type out both policies here.


You should try and get your hands on a copy of American National (ANPAC)'s homeowner's policy and review it sometime. When you do, you should pay close attention to the coverages and exclusions.

If I find water damage in a wall that occurred over time will it be covered? That depends on the facts. Plus, isn't the Insurnace company's game plan to deny, delay, and confuse?

I can't say I have ever found "boomerang kid" as a defined term in an auto Insurnace policy. Huh. *scratches head* However, if it means what I think it means, then, no, my policy doesn't cover that and the company should be notified. But again, that would depend on the facts and definition of boomerang in the policy. (Luckily my child is only 18 months...)

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The listing of basic coverages and limits doesn't really reveal what is and isn't covered at the exclusionary level. For example, if I discovered extensive water damage inside a wall or in a crawl space that had occurred over many months, my HO policy covers that. MANY policies don't cover that. Nothing in the listing you posted tells me if that is a distinction between your two policies. A 4- or 5-figure uncovered loss can pay a lot of premium differential.

If you had a boomerang kid return home and drive your car, do both of these auto policies cover that? Some d Direct physical damage to "covered home systems" caused by a sudden and accidental mechanical or electrical breakdown.on't, including that of a major national advertiser unless the insurer is notified. The differences among auto policies at the exclusionary level are many and can be catastrophic.

But you indicated that you had done a comparison at that level, so that's good.

One thing I found interesting that the new HO policy will cover that the old policy didnt cover is
direct physical damage to "covered home systems" caused by a sudden and accidental mechanical or electrical breakdown. This isn't an endorsement so the premium is included in the total premium amount and the coverage can't be declined or increased.

A covered home system includes:

Central air conditioning systems
Conventional and solar water heaters
Electrical service panels
Emergency generators
Central vacuums
Pool or spa filtration, pumps and heating equipment
Boilers
Radiant floor heating
Home security systems
Well pumps
Chair lifts and elevators
Furnaces and heat pumps
Renewable heating
Ventilating systems and fans
Air and water filtration systems
Sauna equipment