If only things were so easy. You cannot assume that just because you’ve purchased and agreed to a new insurance policy that you are exempt from paying the bill for your other one. Yes, you will technically still be insured by law if you do, but you’ll also still be responsible for the old bill.

Once you have decided you are done doing business with a particular insurance company, it is a good rule of thumb to request a cancellation. Letting a policy cancel without notifying the company can cause problems. Canceling your insurance can be awkward, but it’s pretty straightforward. Below, you can learn how to cancel your car insurance in four easy ways — and learn what happens when a policy is not canceling properly.

1. Call in Request Calling your agent is probably the fastest way to notify the company of your cancellation. Sometimes a phone call is all it takes, but most of the time a signature is also required for cancellation. If you are switching solely on the basis of a lower price, it is recommended to call and speak with your agent about canceling before deciding to do so. It is possible additional discounts can be applied or coverage can be changed on your current policy possibly making it so you do not have to switch insurance companies.
2. Mail or Fax a Written Request Signing a cancellation request seals the deal when it comes to canceling car insurance. It’s as easy as writing or typing out the date, your name, policy number, and request cancellation on the date you are planning on switching insurance carriers. Sign the document and mail or fax it to your agent or direct to the insurance carrier.
3. Stop in Personally It may seem awkward to go into your agent’s office and ask to cancel your policy; however, it is a common occurrence at all agencies. Every agency loses clients from time to time, and unless they are your relative or best friend, they probably won’t take it personally. It is possible your current agent may try to persuade you to stay, but if you politely decline that should be the end of it. Sign the cancellation form and you’ll be on your way.
4. Ask Your New Insurance Company to Assist With The Transition Asking your new insurance agent to cancel your old insurance policy is a simple way to complete your cancellation. It’s a great way to avoid any awkwardness with your soon to be ex-insurance company. All your new agent needs are your old policy number, effective dates, and a signature on the cancellation form, then the document can be faxed to your old insurance company.

You’ll Have To Pay for the Automatic Grace Period: Technically, if you do not request a cancellation and you just allow your policy to cancel on its own, you are canceling for nonpayment. Some policies do cancel automatically at renewal without payment; however, many companies give an automatic grace period. Grace periods are often a 20-day extension of coverage to allow extra time to get your premium paid. If your policy canceled for nonpayment, you will be billed for the grace period. You will be looking at a possible collections notice if you do not pay or provide proof of another active policy.

You’ll Leave a Bad Impression: Leaving an insurance company without giving notice can leave a bad impression on an agency. It is a good idea to leave on good terms especially if you ever want to return. Rates are always changing and you may want to go back to your prior insurance company again one day. To prevent future awkwardness, notify your agency of cancellation.

Your Policy Might Never Get Canceled: If you are signed up for electronic funds transfer, your policy will continue unless you request cancellation. The money will continue to be withdrawn from your account and you will have duplicate coverage. It is possible to get your money back if you provide a declarations page verifying you had duplicate coverage.

Regardless of how you cancel your car insurance, make sure to keep an eye on your mail for a confirmation letter. If you cancel midterm, you could receive a refund depending on if you have any unused premium. Refunds on car insurance usually take up to 14 days to process. Be sure to cancel your insurance after you have your new policy set with a new carrier. Canceling your car insurance should be a simple process, just don’t put it off or forget about it entirely.