How to Write a Car Insurance Cancellation Letter

Some car insurance companies prefer a phone call to cancel your insurance policy, but others may ask you to send a letter. For example, Nationwide and State Farm request a written notice of cancellation if you want to end your policy. A cancellation letter with a signature is proof that you initiated the request and the effective date of the cancellation.
Keep reading to learn five easy steps to write a car insurance cancellation letter, including a sample letter you can use to start the cancellation process.

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How to Write a Car Insurance Cancellation Letter in 5 Simple Steps

If you need to cancel your car insurance, follow these five simple steps.

1. Finalize your new policy

The first — and possibly most important — step in canceling your insurance coverage is having another policy in place before starting the process. Getting your new car insurance policy before canceling your old policy ensures you won’t have an insurance lapse, which could affect your future rates and cause a claim denial.

2. Gather information about both policies

You’ll need to include the following information on your insurance cancellation notice:

• Your personal information, like your full name and address

• Your contact information, such as your phone number and email address

• The policy numbers for the policy you’re canceling and your new insurance policy

• The effective date your new car insurance coverage starts

• The policy cancellation date for your current policy

To avoid a coverage gap, be sure the cancellation date is the same day or after the new policy starts.

3. Contact your current insurer

Your insurance company might be okay with you calling or emailing to cancel your policy, or it might ask you to submit your request in writing. In other words, you’ll need to write an insurance cancellation letter.
That’s why asking your insurer about its cancellation process is a good idea so you can meet your policy obligations and follow the procedures outlined in your insurance contract. That way, you don’t end up paying for two policies at once.

4. Write and mail your cancellation letter

Now that you have your insurer’s specific instructions, policy documents, and information, it’s time to write your cancellation letter. Once you write the cancellation request, you can send it to the insurance company by email or certified mail, which provides proof that the insurer received the paperwork.
The template in the next section can be used to create a basic cancellation letter that meets most insurance companies’ requirements.

5. Receive written confirmation

When you write your letter, ask your insurance company to confirm it has received your cancellation. Requesting and receiving this confirmation proves your insurer has received the cancellation request and the effective cancellation date in case you need to reference it later.
For example, if your next auto premium comes out of your bank account after you’ve canceled, you can request a refund from your insurer.

Sample Car Insurance Cancellation Letter

A cancellation letter isn’t difficult to write — it just needs to include some key information, such as your policy number, when your current policy will end, and when the new one will begin. If you have automatic payments, you’ll also want to include that.
But if you’re not sure where to start, here’s an insurance cancellation letter template you can use. Just copy the template and fill in the brackets with your information.

[Date]
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 also request written confirmation of the cancellation and the timely refund of unused premiums. You can send both to me at the following address:
[Name]
[Address]
[City, State, ZIP]
If you have questions, don’t hesitate to contact me at [phone number] or [email].
Sincerely,
[Your signature]
[Your full name]

Tips for Sending Your Car Insurance Cancellation Letter

Consider using these tips to help you write and send your auto insurance cancellation letter:

• Verify the mailing address: Before sending off your cancellation request, make sure to have your insurance company’s correct mailing address. Not sending it to the right place could delay your policy cancellation.

• Be polite: Although writing a formal letter might be inconvenient, being courteous and professional in your cancellation request letter is important to ensure a smooth process.

• Confirm the insurer’s preferred delivery notification: Your current insurance company may require you to send the letter by certified mail, or it may allow you to send it by email. Finding out beforehand could save you money on postage.

• Ask for confirmation: Again, you can ensure the insurance company receives your request when you ask for and receive confirmation of your cancellation request.

• Keep a copy for your records: Always keep a copy for your reference in case you need it later.

Things to Consider When Canceling Your Car Insurance Policy

You may be ready to cancel your car insurance policy, but here are some things to keep in mind before canceling:

• You may lose a bundling discount: If you bundle your auto and home insurance with the same company, you might lose the multi-policy discount on your homeowners policy when you cancel your car insurance.

• You may owe a cancellation fee: It’s a good idea to check to see if your insurer charges a cancellation fee.

• You might be entitled to a refund: If you pay your bill in full and cancel before the policy expiration date, ask for a refund of the unused premiums.

• Switching insurers is a process: When switching insurance companies, make sure you complete each step to avoid an insurance lapse. For instance, you should start your new coverage on the same day your old policy ends (or sooner).

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Insurance Cancellation Letter FAQs

Sources

1. Insurance Information Institute, “What is auto insurance?,” Accessed March 29, 2024.

2. Insurance Information Institute, “What’s the difference between cancellation and nonrenewal?,” Accessed March 29, 2024.