How to Cancel Your Car Insurance (2023)

If you’ve decided it’s time to leave your car insurance company, canceling your old policy is easy, but there are a few details you should take note of. For example, you actually need to cancel your policy, not just stop paying. Also, some companies have cancellation fees, and if you don’t want higher premiums on your new policy, you need to avoid a lapse in coverage.

How do I know if I should cancel my car insurance?

If you’re moving to a new state, getting a new car, or selling your vehicle without plans for further driving, it might make sense to cancel your current auto insurance policy.

Another reason to cancel is the allure of a better insurance rate. It makes sense to shop around for car insurance every year. But be careful not to fall for lower insurance premiums at the expense of coverage quality. Consider not just the premiums but also the deductibles, coverage limits, and other details—you want to compare apples to apples.

If you’re canceling because you’re selling your vehicle and plan to be carless, you might want to consider a nonowner policy that will protect you when renting or borrowing a car. Similarly, if you’re storing or parking your car long-term while you’re away, it might make sense to maintain coverage on the vehicle for any potential damage and to avoid a lapse in insurance.

See More: Cheap Car Insurance

What do I need to do before canceling my car insurance?

First of all, if you’re planning to cancel because you want to switch to a new insurance company, make sure you have your new insurance lined up before canceling your old policy. This will ensure there’s no lapse in coverage on your vehicle, which would leave you paying higher rates.

If and when you decide to cancel, check the details of your current policy for information, instructions, required notice periods, and possible fees. Some companies have no fee, while others charge either a flat rate or a “short rate,” which is a percentage of your premium. Then, gather your plan details (driver’s license and policy number) and proceed to the step below.

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How do I cancel my plan?

A common misconception is that you can cancel your car insurance policy simply through nonpayment. In reality, this could leave you with unpaid insurance bills that end up going to collections and damaging your credit score.

The best way to terminate your coverage is to submit a cancellation request to your insurance company. Double-check the details of your policy, but here are the four main ways to do so:

1. By phone: Call up your insurance provider and tell them you want to cancel. For larger insurers, you can usually find contact information through the app.

2. In person: Speak to an insurance agent at a local office.

3. Mail: Your policy documents should contain instructions on how to submit a written cancellation request.

4. Assistance from your new insurer: Sometimes, the provider of your new coverage can contact your old insurer to arrange the policy cancellation.

No matter which route you take, you’ll receive a cancellation notice, which you should keep for your records.

Instructions for Canceling with 5 Major Companies

GEICO

• Process: Call 1 (800) 841-1587, and say “cancel insurance policy” when prompted.

• Fees: None

Nationwide

• Process: Contact your local agent, or call 1 (877) 669-6877.

• Fees: None. You will receive a prorated refund for any unused portion of your policy.

Liberty Mutual

• Process: Call 1 (800) 290-8711.

• Fees: Vary by state. When you call their 800 number, an agent will assist you with all the details.

Mercury

• Process: Contact your local agent directly, or call 1 (800) 503-3724.

• Fees: You may be charged 10 percent of your remaining premium for early termination.

National General

• Process: You can cancel online by emailing [email protected].

• Fees: You may be charged a $50 cancellation fee.

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Can I cancel at any time?

Technically, yes, but check your plan details to avoid fees, and make sure to have a new plan in place before canceling your old one. A lapse in coverage can indicate to future insurers that you’re risky to insure, which means your rates will go up.

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Canceling Is Easy—Just Check the Fine Print

There’s no need to stress about canceling your car insurance. It’s usually quick and painless. But if you still have a car, make sure to have your new insurance plan in place before canceling your old one. And even if you’re going carless or putting your vehicle in storage, it might make sense to have some sort of basic coverage for if you borrow or rent a car or if yours is damaged.

Consider comparing car insurance quotes before canceling your existing policy. Since gaps in coverage can affect insurance rates, it’s best to secure a new policy before canceling your old one.

Frequently Asked Questions