Can you cancel car insurance at any time?
Policyholders can cancel their auto insurance policy at any time, for any reason. And you never have to wait until the end of your policy period to cancel your policy. Even if your policy only started a few days ago, you may cancel it. Contact your insurer or agent to find the best way to cancel your policy. 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. However, depending on your state, and when you cancel, your insurer may charge a cancellation fee. Learn about how to get a refund on car insurance.
Since nearly all states require drivers to have liability coverage, you must have an auto policy in effect with another insurer when canceling with your current insurer. Additionally, if you finance or lease your vehicle, your lender or lease company will typically require comprehensive coverage and collision coverage. Make sure your new policy covers your vehicle for physical damage. You can avoid a lapse in coverage by making sure your cancellation date aligns with the start date for your new policy.
Reasons to cancel your auto insurance
Here are a few valid reasons for cancelling your auto insurance policy:
- You no longer drive
- You’re switching insurance companies
- You’re covered under someone else’s policy
- You’re moving out of the country
Keep in mind, if you’re moving to another state, you won’t have to change insurers unless your insurance company doesn’t offer coverage in that state. There’s no need to cancel your car insurance after selling a car if you’re driving a different vehicle. Just let your insurer know about the change in vehicles so they can update your policy.
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