FAQs
Contact your insurance provider: To cancel your existing insurance policy, you may call your insurer, contact an agent through the company's mobile app or website, mail in a cancellation request or speak to an agent in person, depending on your carrier's options.
Can I cancel my insurance policy at any time? ›
Most providers allow policyholders to cancel their policies at any time. However, some may impose a waiting period before the cancellation goes into effect. This period could be as long as 30 days or more and is intended to prevent insurance gaps for drivers and loss of premiums for insurance companies.
Is it hard to cancel car insurance? ›
Some insurance companies permit you to cancel right over the phone or online. Other insurers may require written notification or a signed document. Generally, insurers will refund you the money for the unused portion of your policy, assuming you paid in advance.
Is there a penalty for canceling car insurance? ›
Cancellation fees: Some car insurance companies charge cancellation fees, usually $50. In other cases, they could charge you a small percentage of your final premium that you were going to pay in the future. The majority of the time, you will not have to pay a cancellation fee.
How much does it cost to cancel car insurance? ›
Car insurance cancellation fees
If you cancel at renewal: You shouldn't have to pay any fees. This is called 'lapsing' the policy. If you cancel within 14 days of starting a policy: You may have to pay an admin fee.
Do I need to cancel insurance before switching? ›
When switching insurers, one of the most important things to remember is to have your new car insurance in place before canceling your current one. You don't want to risk a gap in coverage.
Is cancelling an insurance policy bad? ›
Cancelling your insurance when you pay by direct debit
Having an insurer cancel your policy will make it more difficult to get insurance in the future. The missed payment will also show on your credit report. If you have auto-renewal set up on your policy, this will come out of your account by direct debit each year.
Do I owe money if I cancel car insurance? ›
Cancellation fees can be a flat fee or a short-rate fee. With short-rate cancellations, the insurer will charge the policyholder a percentage of the unearned premium — usually 10 percent. This amount will be taken from the remaining refund, or the policyholder will receive a bill if there isn't a refund owed.
Does canceling car insurance hurt credit? ›
Does Canceling Car Insurance Affect Your Credit? As long as you don't have any unpaid premiums that could be sent to collections, canceling your auto insurance policy won't have any impact on your credit score.
Is it bad to cancel car insurance early? ›
Remember that most states require you to have at least the minimum coverage for your vehicle even if you're not driving it. When you cancel your car insurance too soon, you can be subject to fines and even have your license suspended.
Even if you aren't driving, you may risk fines or a license suspension if you own a registered vehicle but don't have insurance. Canceling your insurance will also lead to a lapse in car insurance coverage, which may mean higher rates in the future.
Does Geico have a cancellation fee? ›
If you want to cancel your policy, GEICO makes it easy with no cancellation fee*.
Do I get a refund if I cancel my car insurance? ›
This'll depend on how long you have left on your policy. Typically, insurers won't refund the final two months of a policy, so for example if you cancel with five months left, you'll only receive three months of premium payments back. Check what your terms are though, as each insurer is different.
Does your insurance go up if you cancel? ›
If your policy is cancelled, your insurer should give you enough notice to find cover elsewhere. But you'll need to declare that your old policy has been cancelled to any new provider. This can make finding cover more difficult and is likely to increase your premiums.
How quickly can you cancel car insurance? ›
When canceling your auto insurance, you should: Confirm whether your policy will be canceled immediately, as some insurance companies require 30 days' notice to cancel your car insurance without penalty. Receive confirmation of your policy cancellation after your request has been processed.
How easy is it to cancel insurance? ›
Most major companies simply ask that policyholders speak with an insurance agent to cancel. The phone number likely will be found on your insurance card, as well as on the company's website or app.
Can I cancel my insurance policy without penalty? ›
If you can't wait until the end of your policy to terminate it, your insurer will likely charge you a penalty. Generally speaking, the farther off your policy end date, the higher the penalty will be.
What is a valid reason to cancel an insurance policy? ›
Reasons to consider canceling your insurance policy:
You believe you're paying too much for insurance. Your business has changed, and you need different coverage. You're moving out of state, and your current insurer doesn't offer policies in your new location. You're unhappy with the service your insurer provides.
How many days can I cancel my insurance policy? ›
As a financial product, car insurance policies are legally required to come with a 'cooling-off period', which gives you the right to cancel no-questions-asked during the first 14 days.
Who has the right to cancel an insurance policy? ›
There are, however, many situations in which an insurance policy may be canceled, either by the insurance company or by the policyholder. The majority of policies, however, are written for a specified term.
