How to Cancel Your State Farm Policy
A good car insurance policy gives you the coverage you need at a rate that you can afford. State Farm is known for not only providing excellent coverage but quality customer service, making it a top choice for many drivers. But if you decide to cancel your State Farm policy at any point it’s no problem.
Thankfully it’s pretty easy to cancel your auto insurance, but it’s important to spend some time planning the cancellation, especially if you’ll still be driving and need to look for a new insurance company. Taking some time to think about why you’re canceling your insurance, what you need in your next insurance policy, and when it’s best to cancel your insurance can help ensure the process goes smoothly and you’re making smart financial choices.
Consider Why You Want to Cancel Your Policy
If you’re thinking of canceling your policy, you’ll need to do a little research and planning first. The exact steps that you take will depend on whether you’re moving to a new insurance company or want to cancel your car insurance entirely, but these steps can guide you through the process.
It’s important not to cancel your car insurance policy based on a snap decision. Before you decide to cancel your State Farm policy, think about the reasons driving that decision and take the time to research and explore your other car insurance options. Taking a little extra time to weigh and plan out this decision could save you from a potentially expensive mistake.
You might want to leave State Farm for several reasons, but there may be ways to solve those problems.
You’re Having Agent Issues
When you sign up with State Farm, you’ll often be paired with a local State Farm agent. Personality clashes or other frustrations with the insurance agent might make you want to leave. If you’re frustrated by your experience with the State Farm agent, consider switching agents. State Farm has more than 18,000 agents nationwide, and you can request to change your agent online, by email, or by mail.
You Want to Change Coverage
You might also find that your coverage with State Farm isn’t as robust as you’d like it to be, or that you’ve received an offer from another insurance company that seems better than the deal that you have with State Farm. It’s a good idea to call them and explain the situation. The company may offer you an updated quote or offer to bundle additional services into your policy so you’re getting the value that you’re looking for.
You Want to Save Money
If you’re removing your vehicle from your insurance to keep your costs down, make sure you won’t accidentally lose out on discounts. For example, if you have your home and vehicle insured with State Farm, you might have a multi-policy discount. Canceling your auto insurance policy could save you money, but the costs of your home insurance could increase because you no longer have that discount.
If you want to save money on your insurance, you might consider raising your deductible. With a higher deductible, you’ll pay lower monthly premiums. If you’re driving your vehicle less and know you’ll be able to pay that larger deductible if you have to make a claim, then increasing it could help to save you money every month.
You might also want to drop parts of your coverage to reduce your rates. For example, if your vehicle is getting older and its value is decreasing, you might decide that comprehensive coverage is no longer worth the cost. Reducing your coverage could lower your rates and make your insurance policy more affordable.
Comparing car insurance rates with other companies could also help you to make sure that you’re getting the best price. When drivers use our auto insurance comparison tool, they save an average of $720 per year. It takes just five minutes , and you’ll get personalized quotes from over 65 auto insurance companies.
Explore Your Options and Shop for Car Insurance
If you’re thinking of canceling your State Farm policy, you’ll need another policy ready so you don’t have a gap in your insurance coverage. Some insurers will quote you higher prices if you have a gap in your coverage, so take your time before leaving State Farm and make sure you have the right new policy lined up. A gap in your insurance will mean you can’t drive your car. If you do, you could face fines and even prison time.
What to Look for in Your Next Car Insurance Company
As you shop for auto insurance, think about the coverage and discounts that you currently have with State Farm. Your coverage needs may have changed, and life changes, like having bought a house or a second car, may mean that you’re eligible for additional discounts, like multi-policy or multi-vehicle discounts.
This may also be the time to consider whether you’re interested in additional money-saving options. Innovative car insurance companies are taking their businesses entirely online, which means they’re able to offer lower-cost plans and additional discounts. If you’re a good driver, you might be eligible for a low rate if you take advantage of telematics and drive with a tracking app for a few weeks.
As you review your quotes and explore different insurance providers, think about what you like and dislike about State Farm. Consider how you prefer to communicate with your insurance company, what you’re looking for when it comes to customer service, and what an ideal claims process would be for you. Reading customer reviews of insurance companies can help you to get a sense of the customer experience that each company offers, so you can better tell if a company would be a good fit.
Compare.com makes it easy to request car insurance quotes from multiple companies at once. You’ll fill out the simple quote request form, which takes about five minutes. Then, you’ll receive quotes from up to 65 companies. This handy tool saves you time, and you can also easily compare those quotes to find the company and policy that’s best for your coverage needs and budget.
Know Your State’s Laws
If you do decide to cancel your policy, many states require you to inform the DMV of a policy change or cancellation. You can discuss whether this is necessary with your agent, or check into your state’s requirements.
It’s also important to be familiar with your state’s required car insurance minimums. If you’ll be changing your coverage or getting quotes from other insurance companies, you’ll need to make sure that your new policy meets those minimums.
How to Cancel Your State Farm Policy
You can cancel your State Farm policy in three ways. Regardless of which way you cancel your policy, you’ll need to provide key information including:
- Your name, address, and phone number
- Your State Farm policy number
- Your desired cancellation date
If you’re switching insurance companies, you’ll also need to include the new company’s name, your new policy number, and the policy start date. If you’ve sold your vehicle, you may need to include your bill of sale or proof that your plates have been canceled.
Cancel by Phone
You can contact your State Farm agent by phone to cancel your policy. If you don’t want to speak with your agent, you can also cancel by calling 800-STATEFARM.
When canceling by phone, you can schedule the cancelation for a date in the future. Otherwise, phone cancellations usually take place immediately.
Cancel by Mail
You can cancel your State Farm auto insurance policy by mail, but this option takes extra time. You’ll need to mail the letter at least two weeks before your cancellation date so that it can be processed.
You can mail the letter to Corporate Headquarters, State Farm Insurance, One State Farm Plaza, Bloomington, IL 61710.
Cancel in Person
You can also go into your local State Farm agent’s office to cancel your policy in person. Be sure to bring along all of the information that you’ll need to cancel the policy, including a bill of sale or proof of your plate’s forfeiture if you’ve sold your car.
Let Your New Insurance Company Cancel for You
Many insurance companies will offer to cancel your old policy once your new policy has taken effect. You’ll need to give your new insurer your insurance policy number and its effective dates. You’ll also need to sign a letter approving the cancellation.
How to Schedule Your Policy Cancellation
If you’re keeping your vehicle on the road, then you’ll want to carefully plan your policy cancellation so that you don’t experience an insurance lapse. It’s a good idea to let your old policy overlap your new policy by a day or two so you know you’re not driving without insurance.
You may want to consider your policy renewal date when deciding on your cancellation date. It’s often easiest to cancel your insurance right before it renews, though you can cancel at any time. State Farm doesn’t charge a cancellation fee, and if you cancel just after your policy has renewed, then State Farm may refund you some of what you’ve paid. If you want to avoid waiting for the refund, sign up for new insurance before your policy renewal date, and cancel your State Farm policy just before it renews.
FAQs About Cancelling a State Farm Auto Insurance Policy
Does State Farm Have a Cancellation Fee?
State Farm does not have a cancellation fee, so you can cancel your current policy at any time. State Farm will also refund the portion of any pre-paid premium that hasn’t been used.
Can You Cancel Your Car Insurance Policy at Any Time?
With State Farm, you can cancel your car insurance policy at any time. It may be simplest to cancel just before your policy renews, since you won’t have to wait for a refund.
Does Canceling Car Insurance Affect Credit?
Canceling your car insurance won’t affect your credit score. If you don’t pay your insurance premiums, the insurer might send that debt to collections, which will negatively impact your credit.
Can You Cancel Car Insurance Online?
Most car insurance companies, including State Farm, won’t let you cancel your policy online. However, you can cancel your State Farm insurance policy by phone, in person, and by mail.
