How to Cancel Auto Insurance in 2024 (5 Simple Steps)
Canceling auto insurance is as simple as calling your provider or agent. You may have to pay a cancellation fee at some companies. It's important to choose new insurance to start before canceling, and most drivers choose a new company for better rates—minimum rates for coverage average $45/mo.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Oct 31, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 31, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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You can cancel auto insurance by calling your insurance company or visiting an agent at the local insurance office directly to start the cancellation process.
Do not cancel auto insurance until you have another policy lined up or you are selling or storing your vehicle. State auto insurance laws determine how much auto insurance you need to drive, and you could lose your driver’s license if you cancel a policy without new coverage. You’ll also see your insurance rates go up.
Keep reading to learn how to cancel insurance policies, and follow our easy steps to cancel your policy today. Need a new car insurance policy? Enter your ZIP in our free comparison tool.
- Step #1: Contact Your Insurance – Contact your company or agent
- Step #2: Pay Cancellation Fee – Pay any applicable fees
- Step #3: Sign Cancellation Letter – Sign the official cancellation document
- Step #4: Receive Conformation – Doublecheck cancellation
- Step #5: Receive Refund if Applicable – For customers who paid in full
Simple 5-Step Guide to Quickly Canceling Your Auto Insurance
Step #1 – Contact Your Insurance
You might need to know how to cancel auto insurance if you’re moving to a new state, are recently married, or just sold your car. Most insurance companies offer a variety of ways for drivers to cancel their coverage, including:
- Over the Phone: Contact your insurance company via the number on your insurance card and ask to speak with an agent about canceling auto insurance.
- By Mail: Your insurer may require you to mail or fax cancellation documents directly to them to terminate coverage.
- Visit an Agent: Cancel auto insurance and sign all documents personally by visiting your company’s local insurance office.
If you are switching auto insurers, you may also be able to ask your new insurance company to initiate the process for you. Depending on your insurer, you may be able to start the cancellation process online or through a mobile app if your company is one of the top companies with the best auto insurance apps.
Some auto insurance companies may require you to give a 30-day notice.
Your current insurance company may try to convince you to stay and offer discounted rates or additional benefits. You can use this to your advantage and negotiate for cheaper coverage or cancel your insurance.
Step #2 – Pay Cancellation Fee
Some companies will charge a fee to terminate coverage before renewal, so be prepared to pay a car insurance cancellation fee upfront. These fees are dependent on state laws and company preferences.Insurance cancellation fees can range from $25 t0 $50 at companies.
Auto Insurance Cancellation Fees by Provider
| Insurance Company | Cancellation Fee |
|---|---|
 | X |
 | $30 |
 | X |
 | X |
 | $50 or 10% of remaining premium |
 | $25 |
 | $50 or 10% of remaining premium |
 | X |
 | $50 |
 | X |
Other insurers may charge 10% of the remaining rates if you pay monthly or bi-annually.
Learn More: Is there a penalty for changing auto insurance?
The companies that don’t charge auto insurance cancellation fees are American Family, Allstate, Erie, Farmers, Geico, The Hartford, Nationwide, State Farm, and USAA.
Step #3 – Sign Cancellation Letter
At any reputable auto insurance company, you must sign an auto insurance cancellation letter to cancel coverage officially. You may sign cancellation documents online, or you may have to sign them in person at an office. This official document formally ends your coverage with the company.
Step #4 – Receive Confirmation
Once the insurer processes your cancellation, you should receive a confirmation letter in the mail or via email. It is important to double-check for this cancellation confirmation, as you don’t want payments to still go through because of a failed cancellation.
Read More: How do auto insurance payments work?)
If you see a payment after cancellation, immediately contact your old auto insurance provider and your bank.
Step #5 – Get Refund if Applicable
You might be entitled to a refund if you paid your auto insurance rates in full (Learn More: Can I get a refund if I switch insurance?).
If you paid your auto insurance in full, your insurance company will also use that payment to cover cancellation fees and refund the remaining amount to you. However, if you pay monthly for auto insurance, you likely won’t receive any refund from your provider.
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Auto Insurance Cancellation Policies
Each insurer will have its own rules regarding how to cancel, and local insurance laws also limit how and when you can terminate coverage.
For example, your auto insurance company will notify the state DMV when you cancel coverage. The DMV will then reach out to you for proof of your auto insurance policy or that you no longer own or are storing the vehicle. In addition, you may have to return your license plates if you no longer own the vehicle.
Can I cancel my insurance at any time? You can cancel your policy at any time, but you may be charged cancellation fees.
Pay attention to your company’s cancellation policies and ensure you are following the right procedure to cancel. When in doubt, read over your auto insurance policy and speak with an agent.
When to Cancel Auto Insurance
Most companies will allow you to cancel car insurance at any time before your renewal period. Still, there are some general rules to follow regarding when to cancel and when not to cancel your auto insurance policy.
There are many good reasons to cancel car insurance, including finding cheaper rates and better coverage, but it's important to have your new coverage start before cancellation.Dani Best Licensed Insurance Producer
For example, if you find more affordable coverage and want to cancel your current policy to switch auto insurance companies, have the competitor’s quotes handy when talking to your insurer. Your insurance company will likely ask you why you want to terminate your policy and may offer you better rates to entice you to stay.
See how much different companies charge on average below.
Auto Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $61 | $160 |
| $44 | $117 |
| $53 | $139 |
| $30 | $80 |
| $68 | $174 |
| $44 | $115 |
| $39 | $105 |
| $33 | $86 |
| $37 | $99 |
| U.S. Average | $45 | $119 |
Shopping around is one of the best ways to get cheap auto insurance after canceling a policy. However, there are many instances when you need to cancel coverage that has nothing to do with rates.
These are other common times to cancel auto insurance:
- Moving to Another State: Insurance laws vary by state, and you might have to change your policy or insurance company to meet local minimums.
- Changing Marital Status: Married couples pay different rates than single drivers, and you will need to update or cancel auto insurance coverage after a marriage or divorce.
- Putting Vehicle in Storage or Selling: If you don’t plan on driving your car, you can cancel your policy or buy reduced coverage. You can also cancel if you’re selling your vehicle.
- Canceling Unneeded Coverage: You can cancel full coverage insurance and buy liability-only on older vehicles or cars you have already paid off.
- Bundling Policies: Canceling auto coverage to buy a policy with your current homeowners or renters insurance company can help you save money with bundling discounts.
Keep in mind that state laws might require you to carry comprehensive coverage for a stored vehicle, even if you don’t plan on driving it. Fortunately, you can earn discounts on auto insurance if your car is in storage without canceling coverage, so check with your company before you cancel any policies.
Learn More: Best Garaging & Storing Auto Insurance Discounts
As with stored vehicles, you do not want to stop auto insurance if your state laws require you to have coverage. Every state except Virginia and New Hampshire requires drivers to carry some level of liability insurance to drive legally. Other states may require more insurance, such as personal injury protection (PIP) or uninsured motorist coverage (UM).
When Not to Cancel Auto Insurance
Do I need to cancel car insurance? Consider the following and do not cancel your auto insurance policy if:
- You own and regularly drive a vehicle.
- You regularly drive friends, family members, or work-related vehicles.
- You don’t have another policy with another company.
Failure to have adequate insurance coverage in your state can cost you your driver’s license and vehicle registration.
If you don’t own a vehicle, you still need auto insurance if you plan to drive someone else’s car. Cheap non-owner auto insurance policies cover you in any vehicle, but most only offer liability insurance. You may need to shop around and compare quotes from multiple companies if you need more coverage.
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Cancelling an Auto Insurance Policy Properly
The best way to cancel auto insurance is to call your insurance company and initiate the process. Do not start to cancel your current insurance if you don’t have another policy from one of the best auto insurance companies lined up. Car insurance is required in 48 states, and you can lose your license and vehicle registration if you are caught driving uninsured.
Call your company or visit a local insurance office if you need to cancel an auto insurance policy.
Sign the car insurance cancellation letter and request confirmation before you leave or end the call. Once you have confirmation, you can request a refund if you paid your premium in full.
Before you cancel, shop around for new coverage by comparing auto insurance quotes online from multiple companies in your area. Enter your ZIP code below to start comparing rates for new coverage today.
Frequently Asked Questions
What happens if you just stop paying for auto insurance?
If you stop paying for car insurance, your car insurance coverage will lapse, and the insurance company will drop your policy.
Without insurance, you will have to pay more to restart your policy or find a new one. Insurance companies will also consider you a higher risk and charge higher auto insurance rates.
How much does it cost to cancel auto insurance?
Some companies charge $25 to $50 if you are canceling car insurance before renewal, while others charge 10% of your remaining policy payments. Fortunately, many major insurers, including Geico, Nationwide, and State Farm, do not charge to cancel auto insurance.
Can I cancel car insurance if I sell my car?
Yes, you don’t want to keep car insurance after selling cars unless you have other vehicles you are insuring. You can also sell a car without auto insurance if you aren’t planning on driving it before selling. You will have to turn in your license plate and tags.
Can you cancel your auto insurance at any time?
Yes, most auto insurance companies allow drivers to cancel policies anytime. Your insurer may charge a fee to cancel a policy before the renewal period, but you can end your coverage.
When should you cancel your auto insurance after selling a car?
Cancel your auto insurance after you’ve signed the vehicle’s title over to the new owner and completed the final sale. Once the car is legally owned by its new driver, you can safely cancel your insurance policy.
Can you get a refund if you cancel car insurance?
If you’ve paid for your policy upfront, you may receive a refund for any remaining unused funds. However, a cancelation fee may be taken out of any available refund (Read More: Do you get your deposit back from auto insurance?).
How do you switch auto insurance companies?
When you switch car insurance companies, you must buy a new insurance policy before you cancel your existing coverage. Schedule your new coverage to start when your current policy ends, then call your current insurer to begin the cancellation process.
To shop for a new auto insurance policy today after an auto insurance cancellation, enter your ZIP in our free quote tool.
How long does it take to cancel car insurance?
It generally takes only an hour or so to cancel car insurance, but you may have to wait 15 to 30 days before canceling car insurance, depending on your insurance company’s policy.
Can I cancel my car insurance if I pay monthly?
Yes, you can still cancel your car insurance if you pay monthly for coverage. You can also usually suspend auto insurance for one month if you need temporary suspension of your policy.
What to do if my car insurance gets canceled?
If your car insurance got canceled, you need to contact your insurance company immediately to reinstate your policy. If your policy was canceled due to late payment, most companies have a short grace period where you can make your late payment before they cancel your policy.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.