So you’ve decided to take our advice and combine your auto and home policies. You’ve already checked with your homeowners insurance provider and they’re offering you a generous multi-policy discount. Next thing to do is cancel that auto insurance policy. That’s simple, you say, I’ll just let it lapse without paying it.

Bad idea jeans.

In fact, canceling an auto policy requires a little finesse; it’s kind of like extricating yourself from a relationship–if you drop your insurer too hard, things could get ugly. If you don’t give your insurance company enough notice, you could end up paying for a premium you don’t need or, worse, you could see a ding in your credit report. Worst case scenario: you pay for an extra premium, see your credit rating suffer and find yourself labeled a ‘high risk’ insurance applicant down the road.

Don’t assume you’ll be gently let go if you don’t pay your next premium, as many insurers automatically renew you at the end of a policy period unless you’ve given them instructions otherwise. Most companies allow you to cancel your policy at any time during the policy period, but to be on the safe side, don’t wait until the day before renewal to cancel your policy. The more notice the better. Be gentle and things won’t get nasty.

Lastly, make sure you coordinate your policy change so that you avoid a lapse in coverage.