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Renewing your road tax and car insurance goes hand in hand since driving without an active car insurance policy and road tax in Malaysia is illegal. Most of us are well-versed in the process of renewing both. But did you know that you can actually cancel car insurance policy before it expires?
Top Reasons to Cancel Your Car Insurance
There are various reasons why you, as a policyholder, might want to cancel your car insurance. Here are two common scenarios:
1. Selling Your Car
If you are selling your car to a new owner, you will need to cancel the current insurance policy as part of the ownership transfer process. The new owner will require their own insurance policy under their name.
2. Switching to Another Insurance Company
Sometimes, you might want to switch to another insurance provider for a better offer or a different policy, even before your current one expires. This is possible, but you will need to cancel your car insurance or existing policy first before applying for a new one.
Steps to Cancel Your Car Insurance Policy
Before proceeding with canceling your car insurance, it is important to thoroughly review your current policy to check for any cancellation fees or penalties. You might also want to consider alternatives. For example, you could switch to a different coverage plan or reduce your driving mileage if you have mileage-based insurance.
Another option is to wait until your policy is up for renewal, allowing you to switch insurers without needing to cancel early. However, if you have decided to cancel, here are four general steps you can follow:
1. Contact Your Insurer or Customer Service
Reach out to your insurance company or their customer service team for detailed guidance and to understand the specific steps required. They can assist you with the process to ensure a smooth and hassle-free cancellation.
Rest assured, canceling your car insurance is perfectly legal if you follow the correct procedure.
2. Cancel Road Tax for Ownership Transfer (If Selling Your Car)
If you are selling your car, you will need to deactivate your road tax as well. You can visit the nearest JPJ office to handle this yourself or ask your preferred used car dealer for assistance.
3. Submit a Written Notice
Some insurance companies may require a written cancellation notice, which can often be downloaded from their websites. Typically, insurers offer a seven-day cancellation period. During this time, you will need to provide the original insurance certificate along with any other necessary documents.
Always confirm with your insurer to ensure you are following the correct procedure.
4. Receive Your Refund
After cancellation, you may be eligible for a refund of your premium based on short-period rates, provided you have not made any claims. Refund timelines can vary, but it generally takes two to four weeks for the amount to be credited to your bank account.
The exact refund amount will depend on your insurer’s specific policies.
Cancel Car Insurance: Get Your New Car Insurance with Qoala Malaysia
While canceling your car insurance is permissible, doing it incorrectly can be a hassle. Make informed decisions when selecting your insurance coverage to avoid unnecessary cancellations and save time and money. Now that you understand why and how to cancel your car insurance policy, consider these additional tips:
- Always confirm with your insurance provider to ensure you are following their specific cancellation procedures, as these can vary.
- To avoid any gaps in coverage, arrange your new car insurance before canceling your current policy if you need to be on the road.
For more tips and the best car insurance coverage options, visit the Qoala website. Qoala offers a range of top insurance policies from leading companies. Renew your car insurance with Qoala for a quick, easy, and secure experience.
