A Sample Car Insurance Cancellation Letter
You’re trying to cancel your old car insurance because you found a much cheaper policy by comparing quotes on Compare.com. But when you call to cancel, the rep says they need an official insurance cancellation letter.
What? You can’t remember the last time you wrote a formal letter. Don’t worry! We’ve done all the thinking for you.
What’s the Point of an Car Insurance Cancellation Letter?
Why do some insurers require written notice of cancellation? Well, your auto insurance policy is an official contract: a legal agreement between you and the insurance company that protects you against financial loss in the event of an accident, bad weather or theft.
That’s a big deal. It means that your insurance company actually can’t cancel your policy, if it’s been in effect for more than 60 days. The exception is if you do something major to break the terms of the contract, such as not paying the premium, committing insurance fraud, lying on your application, or getting your license suspended. Your insurer also can decide not to renew your policy after the term ends.
Otherwise, only you have the power to cancel your policy. Some insurance companies will accept a phone call or an email as sufficient notice of policy cancellation, but others still want that letter — signed, stamped and mailed. Here’s how to write it.
How to Write a Car Insurance Cancellation Letter
Step 1. Make sure you have your new policy all lined up. You don’t want any lapse in coverage when you’re switching car insurance companies. As little as one day or a week without insurance is a red flag to insurers, who may raise your rates in the future because of that lapse. Even if you don’t have a car at the moment, or you’re not driving for some other reason, you want to stay insured.
Step 2. Get your dates straight. To avoid a lapse, make sure you know the date your new policy begins — and have your old policy end on the same date, or the day after. It’s better to have a small overlap than a lapse of even 24 hours.
Step 3. Call your current insurance company. Ask the rep what information must be included in the cancellation letter, and get the right mailing address, too. The corporate address you find online may not be the correct one.
Step 4. Write that letter! Then print and mail it. We’ll make it super easy for you. Here’s a template you can use – just copy it and fill in the bracketed parts with your information.
Sample Car Insurance Cancellation Letter
To Whom It May Concern,
I am requesting the cancellation of my auto insurance policy, [policy number], effective [date new policy begins]. As of that date, I will be covered by [new insurance company name], policy number [new policy number]. Please stop all automatic payments or debits from my account as of that date.
I am also requesting written confirmation of the cancellation and the timely refund of any unused premiums. Both may be sent to me at the following address:
[City, State, ZIP]
If you have questions, please contact me at [phone number] or [email].
[Your full name]
I Don’t Have a Computer, What Now?
The good news is that cancellation letters don’t have to be typed on a computer. It can be a little trickier, but you can do it! Here are a few possibilities:
- Hand-write it: A hand-written letter should be acceptable, as long as it’s written carefully and neatly; just follow the template above
- Write it on your phone: You can use a basic word processing app to create a car insurance cancellation letter, then print it using Google Cloud Print (for Android) or AirPrint (for iOS). Just remember you’ll need a WiFi-enabled printer that’s compatible with a printing app
- Write it at the library: It should only take about 15 minutes to write your letter on a library computer, then print it. Most libraries charge a small fee for printing, just 10 or 25 cents per page. When you’re done, remember to save your letter on a flash drive or in your email. Don’t leave it on the public computer, where other people could access your personal information.
Keep in mind that you’re not guaranteed to get money back when you cancel your policy. You may still owe premiums, or the insurer may charge a fee for cancellation. But even if that’s the case, you can breathe a sigh of relief, now that you’ve found a better, cheaper and all-around awesomer policy on Compare.com.