If I cancel an insurance policy do I still owe the insurance company any money if the premiums are paid up at the time that the policy is cancelled?
Question Details:
My insurance company says I can't cancel the policy until the renewal date on my snowmobiles unless they are sold or wrecked. They told me that even if I cancel they will continue to bill for remaining term of the policy. Never heard of not being able to cancel insurance,is there something special about policies on snowmobiles?
Insurance is a contract; both parties are bound by its terms. The first thing to do is to read your policy, including specifically the "fine print" carefully; also read all correspondence from the insurer which you have received, including the backs of invoices, bills, and statements--they often contain terms modifying the policy or agreement. What do these documents say about your right to cancel?
As a general matter, you cannot necessarily cancel an insurance policy mid-term without being responsible for remaining premiums unless you either (1) dispose of the insurered asset; or (2) provide replacement insurance; e.g. when people change auto insurance midstream, they are cancelling the old policy be replacing it with a new one.
