Canceling Parked Car Insurance in Texas
You can usually cancel your parked insurance policy by contacting the insurance provider directly. Some insurance providers provide the option of canceling your parked insurance policy online. Alternatively, you may need to fill out and submit the relevant cancellation form with your insurance provider via mail or by visiting the physical location in person. Most insurance companies have certain guidelines that must be followed when an insured intends to cancel their policy. (Check your individual policy and speak with the insurer’s representative agent for policy-specific information)
Similarly, these insurance companies require notice from the insured to inform them about their intention to cancel their policy so that the policy will not be charged another premium. In addition, you may be charged a flat cancellation fee of less than $100 or a short rate fee when you cancel a parked insurance policy where applicable. Once the cancellation is processed successfully, you will cease to have a parked car insurance policy with your insurance provider.
If you are replacing the coverage with another insurer, make sure that there is no gap in coverage between when one policy ends and the other begins.
When you cancel Texas parked car insurance coverage prior to the expiration of the prepaid term (for example mid-month), the insurer generates a refund of the unused premiums. This money is usually returned by:
Refunding the unused portion of the premium directly to the insured (by paper check in the mail or direct deposit), or
Applying the unused premium towards another policy that the insured has with the same insurer.
If you do not purchase another parked car insurance coverage as a replacement, but your vehicle remains parked, you may be exposed to risk depending on the remaining coverage:
No auto coverage - if the parked vehicle does not have any auto insurance, in the absence of parked car coverage the owner of the vehicle remains fully exposed to risk of loss. If anything happens to the vehicle, 100% of the costs are on the owner.
Liability Only - if the vehicle is covered with liability coverage only, it does not provide any protection for the insured vehicle or the owner. Liability insurance covers only the damage that the insured may cause to others with the vehicle. Insured is 100% responsible for any damages to their vehicle.
Collision Coverage - if the parked car is covered by an active collision coverage and it gets damaged from a collision with another object, insurance will cover the damage, subject to the agreed upon deductible (usually up to $1,000).
Full coverage - if the vehicle does not have an active parked car coverage but carries full coverage auto insurance, the damage caused to the car while it is parked will be taken care of by the comprehensive portion of the full coverage policy.
Uninsured/Underinsured - if the parked vehicle is insured by UI/UIM coverage, insurance can cover a hit and run damage, subject to a $250 deductible (in Texas).
Even if your vehicle is unlikely to get damaged in an accident, it's still essential to have parked car insurance, especially if you intend to park it for more than 30 days. This type of coverage can help prevent financial losses caused by non-accidents. It is important to speak with the insurance company representative or an insurance agent before proceeding with cancellation. Sometimes, if your reason for dropping the policy is cost, your Texas insurance agent can help you find discounts with your insurance provider that may lower your premium rate. Also, the agent can help you shop around for multiple quotes to find rates that will be suitable for your insurance needs. Nonetheless, if you do not need the policy, you can cancel with the help of your professional insurance provider.
