How to Cancel Your Car Insurance

If you found better car insurance quotes with another company, you may want to cancel your auto insurance and switch providers. Similarly, you’ll need to cancel car insurance if you’re moving out of state or selling your vehicle. Find out how to update your car insurance if you’re moving out of state. 

What happens if you just cancel your car insurance? Insurance companies alert the DMV whenever policyholders cancel coverage. Your local department might ask for proof of insurance, and you risk driving uninsured and losing your license if you don’t have another policy ready to go when your old coverage ends.

This guide covers what you need to do to cancel car insurance. We go over when to cancel and the auto insurance cancellation policies with different companies. You may be subject to cancellation fees depending on who you shop with. Keep reading to find out how much it costs to cancel car insurance. 

How to Cancel Your Car Insurance Policy

The best way to cancel an insurance policy is to contact your insurer directly. Insurance companies typically do not allow policyholders to cancel auto insurance online, but you can start the process by calling customer service or visiting a local agent’s office.

There are four easy ways to cancel car insurance. Your insurance company may require you to do one or more of these steps to terminate coverage.

Call Your Insurance Company

This is the fastest way to change or cancel a car insurance policy. Look for the customer service number on your insurance card or the company’s website and tell an agent when you want coverage to end.

Write a Request 

Some insurance companies ask for a formal cancellation letter, which you can send to your former insurance agent. Cancel in Person 

If your insurance company offers a network of local agents, you can visit one of their offices to cancel your coverage in person.

Ask Your New Insurance Company 

If you’re switching car insurance companies, ask your new insurer to initiate the process with your old provider. You’ll need to provide your previous insurance policy number.

The insurance company will alert the local DMV when you cancel an auto policy, so make sure you have new coverage lined up. Also, confirm the policy’s start date with your new insurance so you don’t have a lapse in coverage.

Wondering how to cancel car insurance at Geico and other major insurers? Scroll through the sections below to learn more about the car insurance cancellation policies at different companies. We include car insurance cancellation fees if applicable.

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How to Cancel Geico Car Insurance

You must speak with an agent to cancel, so call 1-800-841-1587 to cancel your Geico auto insurance policy. Tell them the date you want coverage to end, and you’ll receive a refund if you paid upfront for coverage.

You can cancel Geico auto insurance at any time without cancellation fees, although drivers in North Carolina receive a smaller refund based on the state’s Short Rate premium calculation. 

How to Cancel Progressive Car Insurance

Call 1-866-416-2003 to cancel Progressive insurance. You must speak with an agent and inform them of the date you want to end the policy. You would qualify for a refund if you paid any premiums in advance.

Remember that while you can cancel coverage whenever you want, Progressive will charge a 10% fee.

How to Cancel State Farm Car Insurance

You can cancel State Farm car insurance anytime without a cancellation fee. Call an agent at 1-800-782-8332 or mail a letter to the Corporate Headquarters of State Farm Insurance, 1 State Farm Plaza, Bloomington, IL, 91710.

If you want to mail in your cancellation request, the letter must include the following:

• Your full name, address, and phone number
• Policy number
• Date and time you want coverage to end

Don’t forget to sign and date the letter, or State Farm may not accept your request. Alternatively, you can visit a local State Farm agency and cancel in person.

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How to Cancel Allstate Car Insurance

Allstate does not charge cancellation fees, but you cannot cancel Allstate auto insurance online. Call 1-800-255-7828 to speak to an agent. They may require that you submit a formal written request. You can also visit your local Allstate insurance office to cancel in person.

How to Cancel Liberty Mutual Car Insurance

Liberty Mutual charges cancellation fees, but the cost to cancel car insurance will vary by state. Call 1-800-290-8711 to speak with an agent and find out how much it will cost you to cancel your policy. You can also visit your local Liberty Mutual insurance agency.

If you prefer, you can mail a formally written cancellation letter. Be sure to include your name, policy number, and the date you want to terminate coverage. Send it to Liberty Mutual Insurance, 175 Berkeley Street, Boston, MA, 02116.

Do I get a refund if I cancel my car insurance?

Refunds depend on how you pay for car insurance. For example, if you paid your annual premium in full or bi-annually, you will receive a refund for the coverage you didn’t use. 

If you pay monthly, you may not receive a refund, depending on when you decide to terminate the policy. For example, you won’t be refunded if you cancel at the end of the month and start a new policy on the first of the next month. 

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Can I cancel my car insurance at any time?

Yes, you can change car insurance mid-policy. However, you may have to pay a fee if you cancel before the renewal period. 

State insurance laws and individual companies determine how much it will cost to cancel a policy and when. There is no fee to cancel coverage at renewal, but companies can charge a percentage of your annual premiums if you decide to cancel before then. Other states require a flat fee to cancel, so check with your agent before terminating a policy. 

Read our guide to car insurance cancellation fees to find out how much it costs to cancel coverage at the most popular companies.

When to Cancel Car Insurance

Do I need to cancel my car insurance? The answer to that depends on your current situation.

You might need to cancel your car insurance if you:

• Sold Your Car. You don’t need insurance on a vehicle you don’t own, so you can cancel your coverage or update your policy if you buy a new car.
• Changed Your Marital Status. You may need to change your insurance coverage after significant life events like marriage, divorce, or death.
• Moved to a Different State. You may want to cancel insurance and switch providers when moving because not all insurance companies are available in every state, and you will have to meet new minimums, which will impact your rates.
• Found Better Rates. Finding cheaper car insurance is always a good reason to cancel your current policy, but always make sure your new coverage is in place, so you don’t experience a lapse.

If any of these situations apply to you, it might be best to cancel your auto insurance.

When Not to Cancel Car Insurance

You never want to cancel auto insurance if you own a vehicle. It is illegal to drive without car insurance, and you could lose your driving privileges if you don’t carry an up-to-date policy. 

Are you buying a new car? You don’t need to cancel your insurance. Just contact your insurance company to update your policy with the new vehicle’s make and model. This will change your monthly insurance rates, so always shop around and compare companies to find more affordable coverage.

If you decide to switch insurance companies when you buy a new car, you will have to cancel your current auto policy. 

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What if your insurance company cancels your policy?

An insurance company cannot cancel your policy after 60 days of coverage without a valid reason.

There are very few reasons why an insurance company will cancel car insurance:

• Failure to pay your premium. If you miss a monthly or annual payment, your insurance company will cancel your coverage after a grace period.
• Insurance fraud. If you lied on a claim or made serious misrepresentations on your policy, your insurance company will cancel your coverage.
• Suspended or revoked license. If you lose your license due to DUIs or other serious moving violations, you’ll lose coverage and have to file SR-22 to reinstate both your insurance policy and driver’s license. Find out how to file for SR-22 car insurance. 

Fortunately, insurance companies cannot cancel a policy without warning. It will notify you via mail or e-mail that your coverage will be terminated and when. It is your responsibility to get new coverage as soon as possible or file SR-22 insurance, depending on your situation.

What You Need to Know About Canceling Car Insurance

You usually cannot cancel auto insurance online. Insurance companies require you to call and speak with an agent to terminate coverage. Others may ask you to write a formal letter requesting cancellation.

Most companies do not charge a fee to cancel car insurance. If you cancel before your renewal period, however, you may be subject to paying a percentage of your annual rates. State laws determine how much an insurance company can charge to cancel a policy, so confirm with your agent how much it will cost before you decide to cancel.

If you need to cancel your car insurance policy, start shopping around for new coverage first. You always want to have your new policy in place before you cancel auto insurance. If not, you risk driving uninsured.

Find new car insurance today with free quotes from our comparison tool below. We compare rates from multiple insurance companies near you to help you get the cheapest auto insurance quotes possible.

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