What is a policy endorsement for car insurance?

(Photo Credit: Freepik)

Ever been in this situation? Wanting to change your insurance policy because you found a better offer or feel that your current coverage no longer meets your needs? But can you cancel your current policy before its scheduled expiry?

If you feel that your current car insurance policy doesn't quite meet your needs and you want to switch to a new insurer because you found a better offer or you're selling your car and need to cancel the insurance, the truth is you can request to cancel the policy.

A policy endorsement is a request to cancel a policy that has been issued, in order to receive a partial refund of the premium already paid. Typically, the refund is calculated based on the period of coverage already provided, as a percentage, and subtracted from the total annual premium paid.

Policy endorsement refund, how much money will I get back?

The rates of car insurance premium refund

Example:

• Insurance premium: 25,000 baht
• Paid premium for 1 year and received coverage for 6 months, totalling 180 days until cancellation.
• If coverage for 180 days, you will receive a 30% refund, i.e. 30% x 25,000 = 7,500 baht

*Dependent on the terms and conditions of each insurance policy and insurance company.

(Photo Credit: Freepik)

To cancel a policy endorsement, here's what you need to do:

• In the case where you want to cancel the policy before the coverage period begins, and the policy has not been issued:
  • Contact the insurance company to inform them of your intention to cancel the policy.
  • Notify them of the vehicle registration number for which you want to cancel the insurance, the insured person's name, and the reason for cancellation.
• In the case where you want to cancel the policy after the policy has been issued:
  • Contact the insurance company to inform them of your intention to cancel the policy.
  • Notify them of the vehicle registration number for which you want to cancel the insurance, the insured person's name, and the reason for cancellation.
  • Arrange to send the original policy document to the agent or the insurance company's representative to process the cancellation.
• In the case where you want to cancel the policy after it has been in effect:
  • Contact the insurance company to inform them of your intention to cancel the policy.
  • Notify them of the vehicle registration number for which you want to cancel the insurance, the insured person's name, and the reason for cancellation.
  • Prepare a copy of your ID card, cross out your name, and specify the date you want the coverage to end. Then send it to the insurance company.

Documents required for policy endorsement refund:

• Copy of the identification card of the policyholder
• Copy of the bank account passbook
• Original insurance policy document
• Policy endorsement refund request form with signature

If you want to endorse your old policy to find a new one, let Motorist help you find the insurance policy offer that suits your needs!

Read More: Which Type of Car Insurance is Best for a Used Car?

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