How to Write a Car Insurance Cancellation Letter

When writing a car insurance cancellation letter, it should include your name and address, your insurance company's name and address, your car insurance policy number, a cancellation date, and a refund request. We've included a sample car insurance cancellation letter for your convenience. Now is also the perfect time to start comparing car insurance rates from the best auto insurance companies. Use our FREE tool below to get started.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 29, 2021

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How Do I Write an Insurance Cancelation Letter?

Here's what you need to know...

  • Writing a car insurance cancelation letter is quick and easy
  • As the insured, you maintain the right to cancel at any time
  • It is important to have other coverage set in place to avoid a lapse in coverage

People cancel car policies for many reasons including selling their current vehicle or not being able to drive any longer. They may even find better rates with another company.

This is especially true if you have moved to a different neighborhood. You may discover lower price quotes for different areas.

Whatever the reason may be, it is important to follow the insurer’s guidelines to properly terminate.

Some policies can be canceled over the phone with a customer service representative while others may require a 30-day notice and/or written notice.

Policies are considered as contracts between the insurer and consumer and a formal letter is often required to cancel.

When shopping for car coverage, it is important to become acquainted with their cancelation policies before making a purchase.

Although writing a cancelation notice is very easy, you should be sure to include a few pieces of important information to properly cancel business with the insurer.

Before canceling, make sure you have proper coverage in place.

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What Information Should I Include?

Your written cancelation should be short and to the point.

It should include the following information:

  • Name/Address of Insured
  • Name/Address of Company
  • Policy Number
  • Requested Cancelation Date
  • Refund Request for Remaining Premium Balance

Be sure to include the names of any direct company representative at the top of the notice.

In the main paragraph, begin the notice by directly requesting the cancelation.

State that all charges must be terminated.

Next, state the date that you wish the insurance policy to cancel. Request a refund of any overpaid premiums. If preferred, you can request a check.

When closing your notice, simply end with a salutation such as “Sincerely.” Be sure to sign your name underneath the salutation, even if the notification has been typed.

Below is a sample of a simple cancelation notice:

April 7, 2015

John Doe
1234 Main St
Springfield, Ohio 12345

Lizard Auto Insurance
54321 Broad St. Suite #100
Springfield, Ohio 12345

Attn: Cancellations Department

RE: Car Insurance Policy Number: 9236647

This letter as a formal request to cancel the referenced car insurance policy (9236647). Please stop all debits or charges for premium payments. The effective date of policy cancellation is 04/25/2015.

I am also requesting written correspondence of the cancellation and the refund of any premiums. The cash value of the policy should also be sent with any returned premium. This action needs to occur within a period of 30 days from the receipt of this notice.


John Doe
1234 Main St
Springfield, Ohio 12345

Be sure to check for spelling errors and verify all information, including names, addresses, and the policy number. Use business letter format when typing the notice.

What Should I Remember When Writing A Cancellation Letter?

Before you fold up the notification and send it off, keep a few things in mind:

  • Make sure you have the correct mailing address. The insurer would not be held responsible for a document they did not receive. If possible, use a shipping method that provides a tracking number so you can know exactly when the notice arrives at their location
  • Include “cancelations” within the send-to address. Insurers are often large operations with many departments. You want to ensure that your notification goes exactly where it needs to
  • The main policyholder should be the only one to sign the notice. For example, if your relative is listed as a driver, he or she would not be authorized to sign the cancellation notice and the company may deny the request
  • Be professional, yet firm in your tone
  • Be sure to make two copies of the notification so you can keep one for your own records

Why Should I Always Keep Car Insurance On My Vehicles?

If you plan to operate your vehicle, it’s important to ensure that it has coverage. Before you cancel, you should have new coverage set up and ready to go.

A lapse in your car coverage can cause you many problems.

Consequences of letting your car coverage lapse include:

  • Responsibility to pay for all damages due to an auto accident that you caused
  • A record that shows the lapse and may result in higher premiums for future policies

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How Do I Tie Up Loose Ends?

Once you have successfully canceled your car coverage, you will want to take care of a few more things.

Contact your state’s DMV and notify them of the cancelation. This may be a requirement in some states. You may have to surrender the vehicle’s license plates and registration tags.

You may have to surrender the vehicle’s license plates and registration tags.

If your car is financed, you should notify the lienholder that you have changed car insurers.

Keep in mind that most finance companies require coverage on financed vehicles.

If they discover that their vehicle is not insured, you will likely be asked to return it.

Canceling an auto policy is a relatively quick and easy process. As the consumer, you always have the right to cancel the policy at any time for any reason.

Establish the date you want it to end, request your refund for overpaid premiums and make sure you have another insurer lined up to take its place if you plan to keep driving the car.

Once you have written the cancelation notice, you can either mail it or fax it.

Remember, though, if you’re still driving, you still need coverage. Compare quotes today using our free tool below.



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