There are respective reasons why you might need to cancel a car insurance policy. For exemplar, possibly you no longer own the cable car in question. Or you ’ re moving to another state. Or you want to switch to a less expensive insurance party. Whatever your argue, the process should be relatively straightforward. hera ’ s how to go about it—and how to avoid some pitfalls .

Key Takeaways

  • You can cancel your auto insurance policy whenever you want.
  • If you’re keeping your car, you should arrange for other insurance first to avoid a lapse in coverage.
  • Virtually every state requires drivers to have at least a minimum amount of insurance coverage.

How to Cancel Your Car indemnity policy

Depending on your indemnity ship’s company ’ mho rules, there are a kind of ways to cancel your policy.

  • Call your provider. 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. This is often the quickest method, although you still may have to sign a cancellation notice or other documents to make it official.
  • Mail or fax your cancellation. If your insurance provider is more old-fashioned, then you may need to send a cancellation letter either to your agent’s office or directly to the company.
  • Visit the office. If the insurer has physical locations nearby, you can stop in and handle the paperwork in person.
  • Have your new insurer deal with it. If you’re cancelling your policy because you’re switching to a new insurance provider, then the new provider can initiate the process and guide you through it.

note : What you don ’ thyroxine want to do is plainly let your policy relapse and not notify your insurance company that you ’ re cancel. In that case, the insurance company might continue to circular you and report your failure to pay to the credit agency, potentially damaging your credit score .

What Happens When You Cancel Your policy ?

When you cancel an car policy policy, your insurance company will likely notify your state of matter that you and your vehicle are no longer insured. Because it ’ randomness illegal to drive without indemnity in virtually every department of state, your submit ’ s department of motor vehicles may ask you for proof that you either sold the vehicle or have obtained other insurance. If you don ’ triiodothyronine react, then the state can suspend your registration and driver ’ sulfur license. In some states, you besides may be required to return your license plates .

If you still have time left on the policy, your insurance company may issue a prorate refund of the bounty that you paid most recently. however, some insurers besides charge a cancellation tip if you want to get out of your policy early .

If you’re switching insurance companies, make sure to have the fresh policy lined up before you cancel the old one—and tell the newly insurance company precisely when your honest-to-god policy is set to expire. Lapses in car insurance are illegal in many states and can result in fines. If you have an outstanding cable car loanword or lease, you should besides notify your lender that you have changed insurers .

If you’re cancelling your policy because you’re moving to a new state, note that you will typically have to show proof of policy when you register your car there. States have unlike rules regarding the types and amounts of insurance that you ’ re required to carry .

What If Your insurance Company Cancels Your policy ?

You are not the only one who can cancel your car insurance policy. The policy company can cancel it, excessively .

however, that happens only in limited situations. According to the Insurance Information Institute, the insurance company can ’ thyroxine cancel your policy if it ’ s been in impression for 60 days or longer unless :

  • You didn’t pay the premium.
  • You committed fraud or made serious misrepresentations in your insurance application.
  • Your driver’s license has been revoked or suspended.

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