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Jess Ullrich is a personal finance writer who’s been creating financial and business content for over a decade. Her work has been published in Investopedia, MoneyWise, NextAdvisor, The HuffPost, and she's been contributing to Compare.com since 2024. Prior to writing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz.
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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. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. 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.
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Most auto insurance policies are valid for six or 12 months, but that doesn’t mean you can’t cancel your coverage during that time. Insurance companies often let you cancel by phone or the mail, though cancellation processes vary by insurer. No matter the process, though, it’s crucial to have a new policy in place before canceling your current one.
Here’s how to cancel your auto insurance, what to expect from the process, and when cancellation might make sense.
It’s often fairly easy to cancel your coverage, and you don’t need to wait until your policy is up for renewal to cancel.
You should always make sure you have a new policy in place before canceling the old one.
You might consider canceling your current policy to save money, because you’re moving to a new state, or if your life circumstances change.
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While cancellation processes can differ slightly depending on your auto insurance company, it will likely be simple and straightforward. Most insurers let you cancel over the phone, but you may be able to do so in person, by mail, and through other channels. Here’s a general walkthrough of how it typically works.
Before you cancel your current policy, it’s essential to understand what types and levels of coverage you need. You’ll also want to make sure you have a new policy in place if you plan to keep your car or drive regularly to avoid any coverage gaps.
Car insurance requirements vary by state, and your new insurer should be able to advise you on which coverages your state requires and others that you might want. Your coverage needs will vary based on your state of residence and your personal preferences.
Once you understand what you need for car insurance coverage, it’s time to purchase a new policy. Again, this is an essential step before you cancel your old policy — your new policy should have a start date before or on the date you plan to cancel your existing insurance.
While you might already be sure about which insurance company you’re going with, a car insurance comparison site could help you compare options if you aren’t. These tools let you compare several quotes from different insurers in one place, making the shopping process simpler.
Get the best coverage that suits your needs.
To streamline canceling your old policy, you’ll need to have certain information handy. Your car insurance company will likely ask for the following:
Your name, address, and other personal information
Your old car insurance policy number
The start date of your new policy
Your new insurer and policy information
Your next step is to start the process of canceling your old car insurance policy. Remember that cancellation options may differ from company to company. Many require you to cancel over the phone, but others may also let you do so by mail, in person, or through their mobile app. You can review your old policy or your insurer’s website for insight into the process.
Here’s a look at available cancellation methods for several of the best car insurance companies, according to our research.
Insurance Company  | Cancel Over the Phone | Cancel by Mail | Cancel in Person | Cancel Online or With Mobile App | Potential Cancellation Fee |
|---|---|---|---|---|---|
| Allstate | ✔ | ||||
| Farmers | ✔ | ✔ | ✔ | ||
| GEICO | ✔ | ||||
| Liberty Mutual | ✔ | ||||
| National General | ✔ | ✔ | ✔ | ✔ | |
| Nationwide | ✔ | ✔ | ✔ | ||
| Mercury | ✔ | ✔ | ✔ | ||
| Progressive | ✔ | ✔ | ✔ | ||
| Safeco | ✔ | ✔ | |||
| State Farm | ✔ | ✔ | ✔ | ||
| The General | ✔ | ✔ | ✔ | ||
| Travelers | ✔ | ✔ | ✔ | ||
| USAA | ✔ |
Cancellation options vary substantially from one insurer to the next. For example, if you’re an Allstate customer, you’re limited to canceling your policy by phone. But if Nationwide issued your old policy, you can cancel over the phone, by mail, or in person.
Request a written confirmation that your old insurer has canceled your policy, which should include the effective cancellation date. This will serve as proof that your former insurance company has received your request and taken action.
Many people opt to pay in full for their car insurance for six months or a year because insurers often provide a discount for paying up front. If you prepaid for your policy and then cancel it, you’re probably entitled to a refund. But if you didn’t, you’re likely not eligible for one.
Either way, it’s worth asking when you cancel your old policy.
Your old insurance company may issue a refund by check, by bank transfer, or via the credit card you used to pay your car insurance premiums. Some insurers may charge a fee for canceling your policy before its renewal date, so ensure you ask about this cost and take it into account.
If you’d like to cancel your car insurance, you’ll need to dedicate some time to the process. The most time-consuming part is often finding a new policy to replace your old one, but you can reduce the time it takes by using an insurance-comparison site to get several quotes in one place.
The cancellation process itself often takes just a few minutes, and your old insurance company should send a written confirmation of your cancellation shortly after you contact them. If it owes you a refund for unused premiums, your insurer will likely issue it within a few business days. But if there’s a cancellation fee, you may need to pay that before your old insurer officially cancels your coverage.
Cancellation fees are relatively uncommon, but if your insurance company charges one, it could be a flat-rate fee or a short-rate fee. Flat-rate fees are a specific, unchanging amount, while short-rate fees are structured as a percentage of your unused premiums.
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As mentioned, you can cancel your car insurance policy whenever you’d like, not just when it’s up for renewal. Here are some common reasons you might decide to cancel your auto coverage.
People commonly cancel their policy when they find cheaper car insurance elsewhere. Switching insurers can be one of the best and fastest ways to reduce your car insurance premiums. It’s often a good idea to compare quotes from different car insurance companies ahead of your current policy’s renewal date to ensure you’re still getting the best deal.
Your car insurance coverage needs might change as your life circumstances change. For instance, if you buy a new car, you might want to add new coverage to protect your investment. This is especially true if you previously had an older car with minimal coverage. Your coverage needs might also be different once you pay off an auto loan, add a teen driver to your policy, or move to a new state with different insurance requirements.
Different states require different types and amounts of car insurance coverage, and some insurance companies only issue policies in certain states. Because of this, moving to a different state could mean you’ll need to cancel your old coverage and get a new policy. Before you move, contact your current insurer to determine if they do business in your new state.
The only time it’s OK to cancel your old policy without having a new one in place is when you’ve sold your car and won’t be driving for a long period. Perhaps you’re moving to a city with an excellent public transit system, or maybe you don’t need your car any longer for another reason.
If you plan to drive occasionally, though, it could still make sense to have some degree of coverage. You might opt for a non-owner policy, for example, to avoid a coverage lapse.
While canceling your car insurance could make sense, always weigh the pros and cons before doing so. You might be surprised to find that the cost of canceling exceeds any potential savings. Here’s what to consider before moving forward.
Potential cancellation fees: We mentioned that cancellation fees are uncommon, but they still exist. Determine whether your current insurance company charges a cancellation fee before you cancel your policy.
Cost of new coverage: The cost of a new policy is another key factor to consider. If you can save a considerable amount by switching coverage, then it’s a no-brainer. But if your savings are more limited, factor in potential cancellation fees or the loss of existing discounts.
Potential loss of bundling discount: If you have multiple insurance products with one company, such as homeowners insurance, car insurance, renters insurance, or another type of coverage, also factor in the loss of your bundling discount when considering costs.
Compare quotes from top insurance companies.
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If you’ve weighed the pros and cons, and canceling doesn’t seem like the right choice, it’s worth exploring alternatives. This could allow you to find a better option for your situation. Here are some alternatives to consider.
Ask about discounts: Talk to your insurer about potential discounts if you’d like to reduce your car insurance premiums.
Decrease your coverage: Consider decreasing your coverage if you own an older, high-mileage vehicle that you can afford to repair or replace yourself.
Modify your payment schedule: Your insurer may be willing to modify your payment schedule if you’re experiencing a temporary financial hardship. Contact them to discuss your options.
Increase your deductible: Opting for a higher car insurance deductible — what you pay out of pocket before your coverage applies after a claim — could help reduce your car insurance premiums. Just make sure you can afford the added expense if you get in an accident and need to file a claim.
Switch to usage-based insurance: These days, many people work remotely and don’t drive often. If this situation applies to you, consider switching to a usage-based policy to save money.
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In some cases, your insurance company may cancel your policy on its own. This can happen if the state revokes your driver’s license, you haven’t paid your premiums, or you have several at-fault accidents, a driving under the influence charge, multiple moving violations, or several car insurance claims. If your insurer cancels your coverage, here are some steps to reinstate your coverage and ensure you meet your state’s requirements.
Contact your insurance company: Depending on your situation, your current car insurance company might be willing to reinstate your coverage. Contact them immediately after they notify you of the cancellation.
Get quotes from others: If you can’t get your old coverage back, get car insurance quotes elsewhere. Other insurers might be willing to issue you a new auto policy in certain cases.
Opt for high-risk car insurance: You may need to get high-risk auto coverage through your state if your driving history isn’t great. Contact your state’s department or registry of motor vehicles to determine how to obtain this type of coverage.
Compare personalized quotes and find affordable coverage.
If you’re looking for additional insight into the car insurance cancellation process, here are answers to some of the most common questions policyholders have.
Yes, you generally can cancel an auto insurance policy at any time. You don’t need to wait until your policy comes up for renewal to cancel. Still, some insurers may charge a cancellation fee.
No. It’s not hard to cancel car insurance, but different insurers offer different cancellation options. Some may let you cancel by phone, in person, by mail, or through a mobile app. If you’re considering canceling your car insurance, review your policy for insight into cancellation options.
The best way to cancel car insurance is often whatever is easiest for you — online, by phone, in person, by mail, or via a mobile app. That said, processes vary by insurer, and some insurance companies offer more limited cancellation options.
When you contact your car insurance company to cancel your policy, have your current policy on hand and simply be professional and well-mannered. The representative is unlikely to take your cancellation as a personal affront; remember that people probably contact them every day for the same reason.
Data Methodology:
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Sources:
Insurance Information Institute, “Automobile Financial Responsibility Laws By State,” accessed September 12, 2024.
Insurance Information Institute, “What’s the Difference Between Auto Policy Cancellation and Non-Renewal?,” accessed September 12, 2024.
Insurance Information Institute, “What if I Can’t Find Auto Coverage?,” accessed September 12, 2024.
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Jess Ullrich is a personal finance writer who’s been creating financial and business content for over a decade. Her work has been published in Investopedia, MoneyWise, NextAdvisor, The HuffPost, and she's been contributing to Compare.com since 2024. Prior to writing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz.
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. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. 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.
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