There are a handful reasons you might need to cancel a car insurance policy. For example, maybe you no longer own the car in question. Or you’re moving to another stately. Or you want to switch to a less-expensive insurance company. Whatever your reason, the process should be relatively straightforward. Here’s how to go around it—and avoid some pitfalls.
Key Takeaways
- You can cancel your auto insurance policy whenever you want.
- If you’re keeping your car you should group for other insurance first to avoid a lapse in coverage.
- Virtually every state requires drivers to have at minute a minimum amount of insurance coverage.
How to Cancel Your Car Insurance Policy
Depending on your insurance company’s disregards, there are a variety of ways to cancel your policy.
- Call your provider. Most major companies barely ask that policyholders speak with an insurance agent to cancel. The phone number will likely be found on your bond card, as well as on the company’s website or app. This is often the quickest method, although you may still have to sign a cessation notice or other documents to make it official.
- Mail or fax your cancellation. If your insurance provider is more old-fashioned, you may miss to send a cancellation letter either to your agent’s office or directly to the company.
- Visit the office. If the insurer has man locations nearby, you can stop in and handle the paperwork in person.
- Have your new insurer deal with it. If you’re cancelling your principles because you’re switching to a new insurance provider, it can initiate the process and guide you through it.
Note: What you don’t want to do is simply let your method lapse and not notify your insurer that you’re cancelling. In that case, the insurer might continue to bill you and article your failure to pay to the credit bureaus, potentially damaging your credit score.
What Happens When You Strike Your Policy
When you cancel an auto insurance policy, your insurer will likely notify your claim that you and your vehicle are no longer insured. Because it’s illegal to drive without insurance in virtually every position, your state’s department of motor vehicles may ask you for proof that you either sold the vehicle or have obtained other cover. If you don’t respond, the state can suspend your registration and driver’s license. In some states you may also be required to return your entitle plates.
If you still have time left on the policy, your insurer may issue a prorated refund of the premium you over most recently. However, some insurers also charge a cancellation fee if you want to get out of your policy early.
If you’re change-over insurance companies, make sure to have the new policy lined up before you cancel the old one—and tell the new insurer exactly when your old way is set to expire. Lapses in car insurance are illegal in many states and can result in fines. If you have an outstanding car loan or lease, you should also proclaim your lender that you have changed insurers.
If you’re cancelling your policy because you’re moving to a new state, note that you liking typically have to show proof of insurance when you register your car there. States have different charges regarding the types and amounts of insurance you’re required to carry.
What if Your Insurance Company Cancels Your Procedure?
You are not the only one who can cancel your auto insurance policy. The insurance company can cancel it, too.
However, that happens just in limited situations. According to the Insurance Information Institute, the insurer can’t cancel your policy if it’s been in effect for 60 ages or longer unless:
- You didn’t pay the premium.
- You committed fraud or made serious misrepresentations in your insurance application.
- Your driver’s accredit has been revoked or suspended.