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Cancelling a policy for online car insurance or offline, can be done for various reasons. Simply delivering the necessary replacement paperwork to the insurance company enables you to cancel your car insurance coverage at any moment with little effort.
You may incur a small fee if you cancel your policy while it’s still active. Nevertheless, there is no room for flippancy in the decision-making process. When determining whether to cancel your car insurance policy, you must consider several different variables carefully.
Before you cancel your third party car insurance online, here are some things to consider.
Cutting back on the coverage:
People struggling to make vehicle insurance payments may consider dropping their policy to save money. Instead of cancelling the entire policy, consider dropping the comprehensive and collision coverage. Depending on your chosen policy, you may or may not still be protected against liability damage.
Another option is to increase the amount of the deductible associated with the comprehensive and collision insurance plan. When the amount of the deductible is raised, the cost of the premium might be brought down. This results in savings for you. Despite this, you need to maintain a high standard of defensive driving. An accident or car damage might cost you a lot. ##
Time apart driving:
Before you go ahead and terminate your car insurance policy, this is one of the crucial questions you need to ask yourself first. How long are you planning to go without using your vehicle?
You are required to maintain the insurance policy valid even if you decide to use an alternative mode of transportation for the next few months. It can be beneficial during the car insurance claim process. Because drivers must obtain car insurance, violators of the law face fines and other consequences if caught driving without a policy.
You will be considered a high-risk driver if you try to buy car insurance for the second time after a specified amount of time has passed and you were previously denied coverage.
In addition, the insurer will charge you a higher monthly cost if you do not keep the policy active.
Insurance for new automobiles:
You can select a new car insurance company whenever it ideally suits your needs. You may shop for new car insurance and compare different car insurance policies online. Be sure to jot down the date your new policy goes into effect before you cancel the old one. It is necessary to submit a request for cancellation to the insurance provider.
Penalties:
To cut costs, many people need offline or online car insurance coverage to drive their cars. They are under the impression that they won’t need it anytime soon. But life events are unpredictable.
At any given time, you risk being involved in a mishap.
Because being involved in an accident without car insurance coverage can cost you everything, the uninsured driver will be responsible for bearing a huge deal more significant financial burden than the cost of the policy itself. Additionally, you will be held accountable for any damage that is incurred.
It is always ideal to rethink cancelling your car insurance policy and investigate other options to ensure that you and your vehicle remain protected in an accident. Car insurance is an important and valuable product with more positives than negatives.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
