A Sample Car Insurance Cancellation Letter

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Written by Nick Versaw Edited by Quiana Darden Reviewed by Amanda Clear

Updated November 14, 2022

You’re trying to cancel your old car insurance because you found a much cheaper policy (possibly even by comparing quotes on Compare.com). But when you call to cancel, the rep says they need an official insurance cancellation letter.

What does that mean? You can’t remember the last time you wrote a formal letter. Don’t worry! We’ve done all the thinking for you.

Key Takeaways:

• Insurance companies have different requirements when you want to cancel your auto insurance policy. You may be able to call them, but some require you submit your request in writing which is why you need to write an insurance cancellation letter and send it to your carrier by mail.
• When writing your insurance cancellation letter, make sure you have all information provided in this template, especially your cancellation date to ensure you don’t have a lapse in coverage.
• Make sure you have the right address for your previous auto insurance carrier before mailing your cancellation letter to them.

What’s the Point of a Car Insurance Cancellation Letter?

Why do some insurers require a written notice of cancellation? Well, your auto insurance policy is an official contract. It’s 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 your insurance company can’t cancel your policy if it’s been in effect for more than 60 days. The exception is if you do something significant to break the terms of the contract. These actions might include 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. However, others still want that letter — signed, stamped, and mailed, and here’s how to write it.

How to Write a Car Insurance Cancellation Letter

Ready to walk away from your insurance policy? Here’s how to write a car insurance cancellation letter:

Step 1. Make sure you have your new policy all lined up. You don’t want your coverage to lapse when switching car insurance companies. As little as one day without insurance is a red flag to insurers, which 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 slight overlap than a lapse of coverage.

Step 3. Call your current insurance company. Ask the rep what information you should include in the cancellation letter, and get the correct mailing address. 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. You can use this template – copy it and fill in the bracketed parts with your information.

Sample Car Insurance Cancellation Letter

Here’s an example of an auto insurance cancellation letter:

[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]

What if You Don’t Have a Computer?

The good news is you don’t have to type your cancellation letter. It might be a little trickier, but you can use another option:

• Write it by Hand: A handwritten letter should be acceptable, as long as it’s written carefully and neatly; just follow the template above.
• Type 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). Remember, you’ll need a WiFi-enabled printer compatible with a printing app.
• Type it at the library: It should only take about 15 minutes to type your letter on a library computer, then print it. Most libraries charge a small fee for printing, just 10 or 25 cents per page. Remember to save your letter on a flash drive or email when you’re done. Don’t leave it on a public computer, where other people can access your personal information.

Keep in mind that you’re not guaranteed to get your money back when you cancel your policy. You may still owe premiums, or the insurer may charge a fee for cancellation.

How to Send Your Car Insurance Cancellation Letter

After you’ve written the letter, it’s time to send it off to the insurance company. 

Start by neatly folding the letter into an envelope. In the middle of the envelope, write out the address of your insurance company. On the upper left-hand corner, add your return address. 

Next, it’s time to send out the envelope. If you already have some stamps on hand, you could drop the stamped letter in the mailbox. But if you aren’t sure how many stamps the letter needs, head to the post office desk for help. 

Tips to Consider When Sending an Insurance Cancellation Letter

If you need to send an insurance cancellation letter, take a minute to consider these helpful tips:

• Verify the address: It’s worth calling your insurance company to ensure you have the correct address. If your letter gets lost in the mail, that will delay the cancellation of your policy. 
• Be polite: Writing a letter might be an inconvenience. But that’s no reason to be anything other than polite when writing the cancellation letter. 
• Ask for a confirmation in writing: If you want to ensure the insurance company receives your letter, ask for a written confirmation of the canceled policy. 
• Keep a copy: Save a copy of the cancellation letter for your records. If anything goes wrong, you can double-check the instructions given to the insurance company. 
• Send the letter by certified mail: When sending the letter at the post office, you can request the certified mail option. With this option, you can confirm when the letter makes it to its final destination.

Why You Should Compare Car Insurance Policies Before You Cancel Your Plan

Comparing car insurance policies before canceling your plan is a good idea. Otherwise, you could miss out on savings or accidentally find yourself with lapsed coverage. 

Before sending out your cancellation letter, shop around for the best policy on the market. Depending on your situation, you might be able to save big after taking just a few minutes to shop around. 

When you find a better policy, lock it in before you cancel your old coverage. After you purchase new coverage, you can cancel your old policy without experiencing a lapse in auto insurance. 

Are you ready to find a more affordable auto insurance policy? Compare makes it easy to see all of your options.

Frequently Asked Questions About Writing an Insurance Cancellation Letter

How do I write a letter to cancel insurance?

Writing an insurance cancellation letter to your auto insurance company is simple. Just follow the template above and mail it off. 

What is an insurance notice of cancellation?

This is when your insurance company lets you know they will no longer cover you through your policy. It’s different than when you cancel your insurance policy. 

How do you ask someone to cancel your insurance?

If you want to cancel your current policy, you’ll likely need to make a formal request. Some insurance companies consider asking over the phone to be a formal request. But other insurers require a written notice to cancel your insurance coverage. 

What is a cancellation request form?

Sometimes, your insurance company will require a written request for cancellation through a pre-made form. If you aren’t sure how to cancel coverage with your insurance company, reach out to their customer service team.

Nick Versaw Insurance Managing Editor

Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.