When you willingly surrender your vehicle to lienholder is it okay to cancel the insurance on that specific vehicle?
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UPDATED: Jun 25, 2013
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Insurance Question from Chicopee, MA
Asked on 06/25/2013
When you willingly surrender your vehicle to lienholder is it okay to cancel the insurance on that specific vehicle? I have my leased car and a car I own on the same policy I just want to cancel the leased vehicle
Answer given on June 26, 2013
If you have turned in a leased vehicle to the leasing company, and they have acknowledged receipt of the vehicle, you no longer have an insurable interest in the vehicle so you can cancel the insurance on it.If you returned the vehicle before the lease was up, you need to make sure the leasing company has accepted the vehicle. If they have not, you could still be responsible to insure it until the lease is terminated. Call them to confirm the lease is ended, and document who you spoke to.When you remove this car from your insurance, the cost of the insurance on your existing vehicle will increase. This is due to the fact that insurance companies give a multi car discount, and that discount will no longer apply if you only have one car. The savings is usually about 20% of the premium, so be prepared for that increase.
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