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Yes, If you have a lien holder (basically another insured) on your policy. The terms of your contract require the insurer to notify your lien holder 30 days prior to cancellation. If you show the company you have purchased replacement coverage, then they can expedite the cancellation of your policy helping you to avoid double coverage and paying twice during the coverage over lap with the new policy.

Giving them a copy of your new policy, Saves "You" money.

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Q: Canceled auto insurance and went with another policy Now original insurance company demanding proof of insurance with new company Is this demand legal?
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Related questions

Can my license be suspended for not paying insuranc I placed on someone elses vehicle?

In most states an insurance company must report to the DMV of your state that your insurance is been canceled. This often results in your state suspending your drivers license unless you can prove that you do not have a vehicle, and that the reason your insurance was canceled was because you no longer have a vehicle. The license plate that was obtained for the vehicle must be returned to the DMV. If insurance was purchased for the vehicle from another insurance company, then you must provide proof that you have insurance from the new insurance company. If the actual owner of the vehicle bought insurance from another insurance company, then this should be easy to prove.


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The surcharge is part of the bill and I imagine your policy would get canceled if not paid in full eventually. If it does get canceled you will find it difficult to get insurance through another company and they can ding your credit for non payment but usually that take a few months depending on the company.


How does the policy get canceled?

Lack of payment or too many collisions the insurance company has to pay for. If you want to cancel your auto insurance policy to go with another company, call your insurance company and tell them you want to cancel your insurance but be ready for them to try to persuade you to stay.


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