I had a car accident and after 2 months the insurance company has finally paid off my car. Should I still pay?

Question

I had a car accident and after 2 months the insurance company has finally paid off my car. Should I still pay the remainder of my insurance policy (8 months) or can I cancel it straight away?

Answer 1

If you no longer have the vehicle, then of course you can cancel.   Usually the claims department notifies underwriting for you.

Answer 2

If this was a write-off, they will have done the calculations before sending out their settlement cheque - you need make no more payments.  It's finished.

Answer 3

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Answer 4

If you don't have a car, or plan on buying another car for awhile than go ahead and cancel. However, you will have a lapse in insurance which makes premiums more expensive, especially since you just had an accident.

If you are planning to buy another car soon or in the next month or two, it will be cheaper for you to continue to pay and have no lapse in coverage. Not to mention your insurance company is locked into the current rate for the next 8 months, so you have some time before your rate goes up. Your insurance company actually did you favor by not canceling the policy yet.

Answer 5

If you have replaced the car, transfer your insurance to your replacement car.  If you haven't, cancel the insurance, you have nothing to insure.