How To Cancel Car Insurance in Colorado

To cancel car insurance in Colorado is pretty straightforward. But you’re going to need to understand the repercussions that come with canceling and the right steps of doing it. Otherwise, you will face unnecessary risks and could end up paying a lot of money. Here’s how to cancel an auto policy without unwanted surprises.

 

Understand Why You’re Canceling Your Car Insurance

The first step for those who cancel car insurance in Colorado is to simply know why they are doing it. There are many reasons to cancel an auto policy but not all of them are equal. This is important because when you cancel your coverage there are several ways you could end up paying more money in the end, which is why you’re going to want to be sure you’re doing it for the right reasons.

 

Plan for the Aftermath

Canceling an auto insurance policy is never ideal. It can cost you through liability if you go without coverage and suffer a loss in the meantime. You may find it harder to purchase coverage in the future. There are potential fees. Also, you’ll likely have higher premiums the next time you sign up for coverage.

Every situation is different as well, however. You’re much more likely to find grace if you’re canceling with a month left on your policy because you’re moving out-of-state rather than if you’re canceling after a week because you don’t want coverage. Either way, you’ll need to prepare for the reality that you may have to pay a bit for the privilege, one way or another.

 

Contact Your Carrier

Once you determine canceling your policy is the right decision for you and you’ve prepared financially, simply contact your carrier. You can generally cancel at any time and the cancellation is complete once the terms of your policy are met. For example, if there is a cancellation fee, pay it, and then you’re canceled. You may be able to have this cost subtracted from your returned premium.

Please note that it’s imperative that before you cancel your policy if want to avoid a lapse in coverage or penalty, you’ll need to contact your new carrier before canceling your old policy. This will allow you to maintain coverage and protect yourself from potential losses while you transition. Your new carrier should also be able to help with the transition to make sure your affairs are in order.

 

Can You Cancel Car Insurance at Any Time in Colorado?

You have the flexibility to cancel your car insurance policy at any time however, you may have to have a period once giving notice and you may also face a cancellation fee. There are refunds you may be provided, but it depends on your carrier and policy. Many will provide prorated refunds minus any cancellation fees or provide you with a percentage discount.

In some cases, you may find that canceling an auto policy in Colorado has less resistance than in others. You may be eligible for a refund in cases such as adjusting your coverage, changing your vehicle lineup, relocating, or if the provider initiates the cancellation. But no matter what, a theme that bears repeating, is always secure a new policy before canceling the old one when switching providers.

Failing to secure new coverage, regardless of whether you cancel or not, exposes you to risks, unnecessary expenses, and the potential difficulty of finding adequate coverage for your vehicle in the future.

 

What Happens if I Cancel My Car Insurance as a Colorado Driver?

Canceling car insurance can have serious repercussions, including a coverage gap that can result in fines or license suspension, higher future premiums, loss of financial protection, and potential labeling as a high-risk driver.

Reacquiring coverage after cancellation may cost more, and there could be fees when you leave, record implications, and legal consequences if you’re in an accident. It’s wise to explore alternatives like transferring or suspending your policy, following state laws, and consulting another insurer for coverage to avoid such negative repercussions.

 

Do I Need To Cancel My Old Auto Insurance in Colorado?

You may need to cancel your old car insurance in some situations. These include switching to a new provider, selling your vehicle, having a vehicle no longer in use, relocating to a different state, temporarily suspending coverage for stored vehicles, or having a policy for a vehicle you’ve permanently stopped using.

Proper cancellation procedures should be followed, including notifying your insurer, both old and new, to prevent penalties, issues, or lapses in coverage.

 

Car Insurance Cancellation Laws Colorado

While car insurance companies can’t often cancel your policy, there are certain situations in which it is allowed. Colo. Rev. Stat. § 10-4-602 sets the framework in which car insurance carriers can cancel your policy:

• If you fail to pay your premium.
• If someone insured in your household or listed as someone who drives the vehicle has had their license revoked or suspended.
• If you lie when applying for coverage or when filing a claim.

It’s also worth noting that this applies to coverage that is at least 60 days old and you’ll typically receive a 30-day notice before getting canceled. If your policy is getting canceled because of nonpayment, you may receive a shorter notice, such as 10 days.

Drivers can’t have their policies canceled based on grounds of discrimination. This includes things such as your gender, religion, race, etc. Additionally, you can’t have your policy cancelled for filing a claim, even if you file an excessive amount.

However, it’s important to understand the difference between a non-renewal and a cancellation because if you file an excessive amount of claims in a short period of time, you may have to find another carrier because you won’t be renewed:

• A cancellation ends your policy’s coverage currently in place.
• Non-renew means that after your coverage expires, your carrier will not sign you back up as a customer.

Auto insurance is there to restore your losses, but if you are getting in accidents frequently, your risk will likely be deemed too high and your premiums will either rise or you’ll no longer be allowed to receive coverage from a particular carrier as a non-renewed driver.

 

We Help Colorado Drivers Cancel Car Insurance With Ease

Whatever your reason, as simple as canceling an auto policy in Colorado is, there is a lot that can go wrong. You risk enduring several realistic, expensive scenarios if you do it wrong that can affect you today and in the future.

Freedom Insurance Group has been helping drivers since 2005. We know the ins and outs of the process and best of all, if you’re unhappy with your coverage, we work with a wide variety of top-rated carriers. These partnerships allow our customers the following:

• A greater selection of brands to choose from.
• More coverage, discounts, and saving options.
• Customer service matters. Our team is there for you as a buffer, plus, we only work with top-rated carriers who are committed to your needs.
• By comparing your needs among different brands, we help you save money and can help you make the switch, without having to worry.

Our team can even help you bundle with a home insurance policy in Colorado for more savings and coverage. Whether you’d like to receive an online auto insurance quote or speak to an agent, we’re here to help. Click the link or call us at the number above if you’re looking to cancel your car insurance without the hassle.