Policyholders can cancel their car insurance policy at any time and for any reason. And you'll never have to wait until the end of your policy period to cancel it. Even if your policy started just a few days ago, you can cancel it. The easiest way to cancel your car insurance is to call your insurance company or agent.
In many cases, a phone call is enough to cancel the policy or stop the renewal of the insurance. However, some insurance companies may require you to pay a cancellation fee and sign an insurance cancellation form or letter. You may be able to avoid paying the cancellation fee if you wait until the end of your policy and choose not to renew it. You can cancel car insurance at any time, even if you bought a 12-month policy.
If you decide to cancel coverage, be sure to take appropriate steps to ensure that there isn't a gap in coverage. The reasons you might decide to cancel car insurance include finding cheaper rates with another insurer, moving to a new state, or even having an unpleasant experience with your current insurance company. Changing states is a good time to compare car insurance prices and quotes from at least three insurers to see if you can find the best rates for you. Policyholders can cancel their auto insurance policy by calling their agent, mailing or faxing a signed cancellation request, or requesting assistance from a new company.
However, it would be useful to study the specific cancellation policy of your car insurance company to understand all the nuances. Whether you're changing car insurance providers or selling a car with plans to stop driving, canceling car insurance is often a simple process. Forbes Advisor's analysis of car insurance rates by state revealed that the average rate can vary significantly from state to state. Adjustments to your coverage, such as reducing coverage limits or eliminating special equipment coverage after buying a new car that doesn't have custom parts, can also help reduce overall costs and eliminate the need to cancel car insurance.
Most states require drivers to have liability insurance to drive legally, or require that you be able to pay for other people's medical bills and property damage if you cause a car accident. You should always check the minimum car insurance requirements in your state before canceling your car insurance. When you cancel a policy, you can get a car insurance refund or a policy credit if you're staying with the same company. Insurers use their own short rate to calculate the premium accrued when policyholders cancel their auto insurance before the policy expires.
Your insurer could cancel your car insurance if you file too many claims, have too many accidents, commit insurance fraud, don't pay your premiums, or if your license is suspended or revoked. If you switch to a new insurance plan or sell your car, the only time you should cancel your plan is if you switch to a new insurance plan. Once you have a start date for the new car insurance policy, you can cancel your current policy, but remember to make sure that the coverages overlap so you don't run out of insurance. If you cancel car insurance without getting a new policy, driving without insurance puts you at greater financial and legal risk.