How Far Back Can You Cancel Auto Insurance

shellyg

New Member
2
2 yrs ago I scrapped my vehicle but still kept the paying for the insurance. I thought I needed if I would drive another vehicle and so I wouldn’t have a lapse which would result in a higher premium later. If I go to my insurance company and cancel the coverage, how far back can I go to pro rate my payments to. Can I get a refund for the full 2 yrs.
Also should I change or get non-owner auto insurance?

Thank You!
 
How far back you can go probably depends on your carrier, but I don't really see ANY company refunding you for two years. You can typically backdate a cancellation if you have accompanying proof of duplicate coverage, or proof that you no longer owned the vehicle, and I've never asked any of my carriers just how far back they'll go, but I've never requested anything more than 10 days back or so.

Of course, I could be completely off here.

As far as what to do from this point, how long will it be before you buy another car? If it's going to be several months, the higher premium you'd pay for having a lapse probably would be less than what you're paying for insurance you may not need.
Of course, a lot of factors still come into play besides just what you're paying. Do you have any incidents? Maybe you've earned forgiveness on your policy that is saving you from a higher rate? And even if you don't own a car, it's possible you could still be involved in an incident with an uninsured driver and need to use your UM coverage...too many factors to consider that we don't really know.
So really, the best answer is, have an honest talk with your agent.
 
2 yrs ago I scrapped my vehicle but still kept the paying for the insurance. I thought I needed if I would drive another vehicle and so I wouldn’t have a lapse which would result in a higher premium later. If I go to my insurance company and cancel the coverage, how far back can I go to pro rate my payments to. Can I get a refund for the full 2 yrs.
Also should I change or get non-owner auto insurance?

Thank You!

I can't see anyone giving you more than a month back. You exchanged your money for the benefit of being insured and you can't take that back because nothing happened.

Once the insurer considers your premium as "earned", I would be very surprised if you were able to get that back.
 
I am guessing, but I imagine if you show proof you sold the vehicle you could cancel back to the beginning of the current policy period, so it might be up to 6 months, or as short as a couple of days.

I'm extremely doubtful they will go back to a previous policy period for a correction like this.

You will also need to provide proof that the car was disposed of or transferred out of your name.

Dan
 
It depends on the carrier. One year is the farthest I know and there are carriers will not allow backdate at all. You should just call your agent or the carrier.
 
I am guessing, but I imagine if you show proof you sold the vehicle you could cancel back to the beginning of the current policy period, so it might be up to 6 months, or as short as a couple of days.

I'm extremely doubtful they will go back to a previous policy period for a correction like this.

You will also need to provide proof that the car was disposed of or transferred out of your name.

Dan

I'm only guessing as well, but I'd say you're nearly 100% correct. I guessed the same thing, only both of your time ranges were a bit shorter than I would think... many states offer 12 month policies, and most states give the insured more than a couple days to update their vehicle information.

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Also should I change or get non-owner auto insurance?

the answer to that needs to factor in how long you are planning to go without a vehicle... if you plan on buying a vehicle in the near future, a non-owners policy is a great idea.... if it's going to be a while before you buy another ride, it comes down to the math, which can be hard to figure without details of what you're buying and when.

check with your current insurance company. some of them are very flexible about directly converting (meaning, not have to write a new policy) an auto insurance policy into a non-owners policy (and vice versa when you buy another vehicle) .... and if you have a bill of sale as proof you sold the vehicle, they may cut you a break. never hurts to ask.
 
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