How to Cancel Car Insurance

If you have decided to cancel your car insurance and risk it alone without a comprehensive car insurance policy, or if you have decided to switch car insurance agencies, you can cancel your insurance policy by contacting your car insurance broker, and they will assist you. Discover what cancelling your car insurance entails with these insights from Dialdirect. 

What happens if you cancel car insurance? 

Apart from leaving your vehicle uninsured and at risk, there will most likely be a previously agreed-upon administration fee or a penalty fee. There will also be a notice period, depending on your insurer. It usually takes about 30 days to cancel car insurance. Some car insurance agencies may require you to pay the last instalment. However, before you go ahead and call your broker, consider the risks involved in car insurance cancellation. 

Is it wise to cancel car insurance? 

No, Dialdirect strongly advises against this as there are ways to reduce your premiums or change car insurance plans to save on budget. Many people consider it a good idea to cancel their insurance policy as a great idea or way to save money, especially during tough financial times. While the deductions aren’t coming off your account anymore, the risk of being involved in a car accident and the financial implications remain high. 

South Africa’s road accident and fatality rate[1] has been labelled a ‘national disaster.’ Transport Minister Fikile Mbalula said 589 people died on South Africa’s roads during the 2019 festive season, with 489 fatal crashes recorded. In addition, Tracker estimates that R8.5 billion worth of vehicles are either stolen or hijacked[2] from South Africa each year. So before you ask how to cancel car insurance to save a few bucks, consider the risks and troubles that may await you should you be involved in a car accident or pop out of the store to discover your vehicle has been stolen from the parking lot. 

 Do this instead of cancelling your car insurance policy

1. Recognise the added value and take advantage of the benefits

Did you know that Dialdirect’s Comprehensive Car Cover has various benefits? Our easy self-inspection claim process means you can skip the queue at an assessor and do it straight from home or the office. Plus, you can get up to 500MB of free data when you register online and use our express claims service. You also get same-day approval and payout on valid claims (subject to submitting all required documentation). 

2. Get advice from an expert 

Before you cancel car insurance, talk to your insurance broker.  You might be surprised, but car insurance policies aren’t always fixed. They can be negotiated. So, you should make it a routine to contact your insurance broker at least once a year to see if they can adjust any of your payments and update your insurance rather than just cancel the insurance policy outright.

3. Compare other car insurance policies

You’re allowed to compare your current car insurance policy with others by getting quotes from other car insurance companies. If you get a car insurance quote that seems like a better deal for you, then you can contact your current car insurance agency and inquire about the cancellation process. If the process is beneficial, then switching could be a better option and something you should consider doing. 

4. Downgrade your current insurance policy

If you feel that you don’t have the budget for Comprehensive Car Insurance, for instance, you can always look at downgrading to a less robust insurance policy that will reduce your monthly premiums. Just be aware that there will be less coverage provided with a policy like Third-party Fire and Theft Insurance or Third-party Only Insurance. 

5. Increase your excess

Your excess refers to the first payment or co-payment if you had to claim against your car insurance policy. So, while increasing your excess will reduce your monthly car insurance premiums, you should be aware that you will have to fork out more to a mechanic or panel beater in order to get any repair work done. This might prove inconvenient if you don’t currently have cash on hand. 

What to do if I want to cancel car insurance?

If you want to know how to cancel auto insurance, we suggest you call your Dialdirect broker. However, if you’re aware of the risks involved and would like to see your asset protected, have a chat about how and where you can save. Call us on 0860 911 911 or connect online, and we’ll happily assist you.

Sources:

[1] IOL: South Africa’s roads are a ‘national crisis’

[2] Tracker: Vehicle crime in South Africa 

Disclaimer: Dialdirect Insurance is an authorised FSP insurer. Terms and Conditions online.