My Car Has Been Totaled When To Cancel Auto Insurance Policy
Reader’s Question:
I want to know how soon after a car is ‘totaled’ do I have to wait to cancel the insurance policy in Roanoke, Virginia? Should I have to wait for all payments (auto value and medical) to be made before I cancel? And am I entitled to a refund for the unused portion of the policy period?
Carmen
Roanoke, VA
If your vehicle gets ‘totaled’ in a car accident, and it is the only car on the policy, you do not have to wait to cancel your policy. If you choose to cancel the policy, because you are not getting another car to replace it on your policy, you will want to have a cancellation date for the day after the accident.
Your car insurance company will request proof that your vehicle was indeed ‘totaled’ in an accident and the date the accident took place if the other party’s car insurance company is going to pay you for the car accident, to backdate your cancellation date to the day after your accident. Most insurance companies in Roanoke, VA impose a ten percent surcharge to your return premium when you cancel a policy, this is somewhat called a ‘short rate’ cancellation. I do not know if that surcharge will apply in this type of situation. You will need to speak to your insurance company or otherwise, you will be refunded any money that is rightfully yours.
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