The hiring of auto insurance is done by most people when purchasing the asset. This is because contracting the service is synonymous with protection and tranquility, as, in the case of claims, there will be support.

But, there may be a need to cancel the insurance policy, and for that, a series of issues comes into action to be discussed directly with the contracted insurer, to effect the breach of the contract.

When to cancel

The contractor of the insurance service can request the cancellation of the service in several situations, such as:

• Car exchange: when buying another car, it is necessary to transfer or cancel the insurance, since your old asset will be in the hands of someone else.

• Dissatisfaction with the service: in some cases, the insurer is unable to meet the customer’s expectations, and the customer will have every right to request cancellation of the policy.

• Sale of the car: if for some reason, it was necessary to sell your car and there will be no replacement of this car for another, the consumer has every right to ask for the termination of the contract.

• Lack of money: the difficulty of payment can generate a request for termination by the customer, in order to avoid default.

Likewise, the insurance company also needs to terminate a policy in certain situations, such as:

• Default: the non-payment of insurance by the customer, after a pre-established term in the contract, leads to the cancellation of services, and therefore, there is a loss of the insurance guarantee. If the customer suffers an accident within this period, the company will have no liability.


• After thefts: imagine the situation in which your car is stolen, and the insurance company is activated. As provided for in the contract, you will receive some money as a form of payment (the so-called premium). After that, your insurance will be canceled, as it is understood that the customer no longer owns a car. Therefore, if you wish to maintain the services, it is necessary to make a new contract.

How to cancel?

If for any of the reasons above or any other, the need arises to cancel your insurance, understand how you should proceed:

1) Contact the insurer

The first step, without a doubt, is to contact the person responsible for the service, either in person, via email or phone. At this point, explain the situation and inform you that you want to cancel the services.

2) Enter into negotiation

After reading the clauses provided for in the policy for termination cases, try to enter into a friendly negotiation with the insurer, so that both sides are satisfied.

But, if there are abusive topics, seek a lawyer, as judicial remedies will be able to annul them.

3) Signed letter

The formalization will be done by filling in some documents, to be sent to the person responsible for insurance.

At this point, you will be guided by your broker in order to do it correctly.

4) Completion of the procedure

Wait for the given period, and contact us to make sure of the cancellation.

Transferring insurance

Buying a new car usually requires the transfer of insurance: in this case, it can be for both the new car owner as well as for your new car.

The procedure is similar to the cancellation, in the steps in which you must contact the insurer, explain the situation, and complete a formalized document.

The negotiation of values, premium redemption, and price adjustment must be done by the insurer itself and accepted (or not) by the customer. This requires a lot of dialogue.

But, in general, it can be said that the transfer in these cases is more advantageous than the termination of the contract, since part of the amount paid will be used, and there will be no need to pay charges and/or fines. In addition, there is no need to face all the bureaucracy that hiring a new service requires. Thus, you streamline and save.