Car Insurance Terms Iowa IA
Reader’s Question:
My car here in Iowa was totaled during a crash, I’m wondering if I should already tell my car insurance company to cancel my policy even if I have not received my insurance checks yet? I am not planning on any driving for at least a while.
Celestine
Waterloo, IA
There is no reason not to cancel your car insurance policy especially if you no longer have a vehicle to insure anymore, however, before calling up your car insurance company there in Iowa to set a cancellation date, consider a few things first: Does your insurance cover any vehicle other than the one that was totaled? Would there be any surcharges or penalties for canceling your car insurance policy this early? You might be under an agreement with your carrier for a one year or two year policy period and they may impose a cancellation fee or something similar.
I would highly suggest you contact your car insurance carrier first and see if there will be any penalties or charges for terminating your insurance agreement, and if there is,check to see if they would deduct this from the proceeds of your insurance claim for the totaled vehicle. You are also entitled to receive any refunds you may have left with them. Also, you may want to ask if you can backdate the cancellation date to the day after the car accident but some companies may require you to present proof that your vehicle was totaled during that date (you should have a police report stating that your vehicle was involved and was totaled in a collision). Again, call up your insurance carrier to be sure that you understand their policy regarding canceling your insurance coverage.