How to Cancel Your USAA Car Insurance Policy in 3 Easy Steps
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You can cancel your USAA auto insurance coverage at any time. The first step to cancel your USAA policy is to call the company’s customer service number. But there’s more to consider before picking up the phone.
Knowing how to cancel USAA insurance properly is essential, whether you’re moving overseas, deploying, looking for a cheaper car insurance rate, or wanting different coverage features.
This article will detail how to terminate your policy and what to do before canceling, as well as explore alternative options, especially if cost is a concern.
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3 Steps to Cancel Your USAA Car Insurance Policy
We have good news for military personnel and their families: A phone call is all it takes to cancel your USAA insurance policy.
Be ready with the required information, such as your policy number, name, and date of birth. Depending on your reason for canceling, you may need additional details. For example, have your new policy’s start date ready if you’re switching insurers or a bill of sale if you opt out of coverage because you sold your car.
Here’s how to cancel in three easy steps:
1. Review your car insurance policy
Before picking up the phone, get all the necessary information in order. Start by reviewing your current auto insurance policy. USAA policies usually renew automatically, so it’s essential to be clear on your coverage terms and policy renewal date.
Keep in mind the timing of your cancellation can make a difference in avoiding coverage gaps and extra charges. Typically, a good time to switch to a new insurer is when your existing policy is nearing its renewal date.
Regardless of your reason for dropping coverage, you could be on the hook for additional insurance premiums if you cancel after your policy renews.
2. Contact USAA customer service
While other insurers offer several methods for people to cancel coverage, including through a mobile app, USAA’s website lists just one option: Contact a USAA customer service representative by phone at 1 (800) 531-8722.
During the call, be ready to provide your policy information and specify the date you’d like your USAA coverage to end. If you’re switching to a new insurer, make sure your new policy is active so you don’t have a lapse in coverage.
Before you hang up, ask about a refund and clarify the amount. Companies usually refund part of any up-front payment if you cancel your policy before the end of the term.
3. Get your cancellation confirmation
After you cancel your policy, make sure to confirm it went through. USAA’s website doesn’t specify how you’ll receive your cancellation confirmation, but it may come by email or mail. If the USAA agent asks you for a cancellation letter, make sure you sign it and send it back. Remember to stop any automatic payments you set up for the policy.
Some states require you to notify the DMV when you end auto insurance coverage. Check your state guidelines or ask the USAA representative if you aren’t sure.
When to Cancel Your Car Insurance Policy
Finding a cheaper quote isn’t the only reason for military members, veterans, and their families to consider canceling. But deciding when to cancel your car insurance can be as crucial as choosing the policy itself.
Here’s a look at some typical situations where eliminating coverage might be a good idea:
- Deployment or relocation: If you’re deploying or relocating, especially if the move is overseas, you might not need your current policy.
- Switching to a new insurer: Finding a lower car insurance rate, better coverage, or a company with great customer service are all valid reasons for changing car insurance companies.
- Selling your vehicle: You may not need your policy if you aren’t planning to replace your car after selling it.
- Financial changes: A fluctuation in income or expenses might lead you to look for more affordable insurance or reconsider your coverage needs.
What to Consider Before Canceling Your USAA Auto Insurance Policy
Ending your USAA auto policy is a decision that shouldn’t be taken lightly. It’s crucial to consider various factors before making the final call, such as:
- Replacement coverage: If you’re switching companies, review the details of your new car insurance policy to make sure it fits your needs.
- Policy lapse: Most states require drivers to carry a minimum amount of auto insurance. A lapse in coverage can lead to legal issues and higher rates in the future.
- Cancellation fees: USAA doesn’t clearly mention if you’ll pay a fee for terminating coverage. Make sure to ask the representative about this when you call to cancel.
- Premium refunds: You might be eligible for a refund, especially if you paid your premium in advance.
- Changes in discounts: If you also have USAA home or renters insurance, you can lose your bundling discount when canceling your car insurance. Check your policy details to be sure.
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Alternatives to Canceling Your USAA Policy
If you’re thinking about canceling your USAA car insurance, it’s worth exploring alternatives that might better fit your changing needs or specific situation. Here are some options to consider before letting go of your policy:
- Add storage insurance to your vehicle if you aren’t driving it to get lower rates.
- Adjust your policy and coverage options for deployment or an overseas move.
- Check to see what discounts you may be eligible for to help reduce your premium.
- Reduce your coverage limits to match your financial needs.
- Raise your deductible to decrease your insurance bill.
Canceling USAA Policy FAQs
When deciding whether to cancel your USAA car insurance coverage, you might question the process and its implications. Below are answers to common questions to help you make an informed decision.
Can you cancel your USAA auto insurance anytime?
Yes, you can cancel your USAA auto insurance policy at any time. Unless you won’t have a vehicle, pay close attention to the timing before ending your USAA policy to avoid any gaps in coverage.
Does USAA charge a cancellation fee?
USAA’s policy on cancellation fees isn’t clear. When you call to terminate coverage, it’s best to ask your representative about potential cancellation costs.
Will USAA cancel your policy if you just stop paying?
Yes. USAA will send you a non-payment cancellation (NPC) if you don’t pay your premium. If you don’t pay by the NPC due date, the company will cancel your policy. Simply stopping payments isn’t a recommended way to cancel your policy. It can lead to a lapse in coverage, financial risk, and higher insurance prices.
Can you cancel your USAA car insurance policy online?
No. USAA requires policyholders to reach out by phone to cancel their auto policy. You must call the company directly since you can’t end coverage through your online account.
Does canceling car insurance affect your credit?
No, canceling a car insurance policy doesn’t affect your credit. But you should be mindful of unpaid premiums. Late or missed payments can result in debt collection reports, leading to a drop in your credit score.
- Experian, “Does My Car Insurance Policy Affect My Credit Score?,” Accessed January 29, 2024.
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