How to Cancel an Allstate Policy and Find Something New

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Written by Ray Prince Edited by Nick Versaw

Updated February 23, 2023

Are you thinking of getting out of your Allstate auto insurance policy because of rising premiums? What about a recently added exclusion you disagree with? Whatever the reason, it’s easy to cancel your current policy and move on with another provider.

This guide will cover all your questions on canceling Allstate auto insurance, including why you might want to withdraw, how to cancel, and best practices for securing a new policy to avoid any lapses in coverage.

There’s an easy way to see what other car insurance companies can offer you. Enter your ZIP code below to get started:

What is Allstate Insurance?

Founded in 1931, Allstate Insurance offers a variety of insurance products, including auto, homeowners, renters, condominium, term life insurance, and more. Its auto insurance includes several types, including collision, comprehensive, liability, and medical payments. Like most insurance companies, it uses its online platform and local agents to deliver personalized quotes to prospective policyholders.

Why Should I Cancel My Allstate Auto Insurance Policy?

You may decide to cancel an Allstate car insurance policy for many reasons.

Maybe you’re moving, buying a new car, or selling a car. Maybe your premium is just too high for you or you’re not happy with what’s covered.

Often, competing auto insurance providers offer lower premiums for the same coverage, so it doesn’t hurt to shop around for a new policy before deciding.

Remember that you have the option to negotiate your current premium with Allstate. Allstate representatives can tweak policies to your desired monthly payment by revising deductible amounts, liability limits, and removing or adding other policy terms.

How Do I Cancel My Allstate Auto Insurance Policy?

There are three ways to cancel your Allstate auto insurance policy:

1. Call your Allstate insurance agent or customer service agent at (800) 255-7828.

2. Mail an insurance cancellation letter to the address below:

Allstate Insurance Company
P.O. Box 660598
Dallas, Texas 75266

3. Cancel in person at your nearest Allstate office.

Only Allstate agents or customer service personnel can cancel auto insurance policies. Be mindful that they may ask you to submit a cancellation letter with your name, policy number, and effective cancellation date. There’s no option for canceling a policy online and there is no cancellation fee.

Expect your Allstate insurance agent to encourage you to stay on board, offering to lower your premiums to keep you as a customer. Their suggestions will probably include reducing liability limits and dropping various coverages such as roadside assistance and rental car reimbursement.

If you want, you can take this as an opportunity to negotiate the premiums you are comfortable paying. You can also resist all the offers and insist that you want to cancel right then and there — it’s up to you.

If your policy were paid in advance, Allstate would reimburse you for the unused portion of your policy. For example, if you paid a six-month premium but canceled after two months, you will be eligible for a refund for the unused four months. To avoid complications, try to cancel before your policy renewal date or roughly two to four weeks before your next billing cycle.

How to Write an Auto Insurance Cancellation Letter

Some insurance companies allow policyholders to submit policy cancellation requests in writing and sent via snail mail, including Allstate.

Auto insurance cancellation letters can be handwritten or typed. Either way, you must send the letter through certified mail. If drafting letters using a public library computer, remember to save your letter on a flash drive and delete it from the computer, as it contains personally identifiable information.

Information to Put in an Allstate Auto Insurance Cancellation Letter

Here’s an easy car insurance cancellation letter template, so you can just plug in your info.

When drafting a cancellation letter, provide your full name, mailing address, and policy information, including account number and cancellation date. It should also include requests for a written confirmation of the canceled policy, as well as a stop on all automatic payments or charges from your account.

What If I Only Want to Pause My Allstate Auto Insurance Policy?

Unfortunately, auto insurance policies cannot be paused, since having car insurance is required by state law (even if placing your vehicle into storage).

One option Allstate offers is temporarily reducing auto insurance coverage by purchasing comprehensive-only coverage and suspending liability/collision coverage. To do that, your vehicle must have been sitting in storage for 30+ days.

If you lease your vehicle, your finance company may require that you carry both collision and comprehensive coverage until the end of the loan term. So be sure to check with your finance company before taking any action.

But comprehensive-only coverage will not protect your vehicle against collision-related accidents. Even with your vehicle in storage, vehicle-to-vehicle, vehicle-to-object, and rollover collisions (covered events under a collision policy) can happen, so reducing your coverage is a risk.

How Do I Secure a New Policy?

Before you cancel Allstate auto insurance, be sure to have a new one in place to avoid any gaps in coverage.

While shopping around, compare your old policy terms and coverages in applicable discounts against your new coverage‘s estimates. Be sure to account for any inclusions (e.g., adding roadside assistance) or exclusions (e.g., removing medical payments coverage).

Remember to explore discounts as well. In many cases, discounts awarded by your old insurers may not transfer over to your new insurer. Therefore, before enrolling in any new policy, it doesn’t hurt to call an Allstate agent to discuss available discounts you might be missing.

Find the Best Policy for You

Now that you know everything there is to know about canceling your Allstate policy, now is a perfect time to shop around and compare quotes from multiple cheap car insurance providers like GEICO, Liberty Mutual, and The General. 

See if your Allstate policy is truly the best you can do by exploring what’s out there. We’ll gather all your quotes in one place so you can make the most informed decision:

Ray Prince Insurance Writer

Ray Prince is an auto insurance writer for Compare.com based in Miami. He specializes in writing long-form content and product descriptions for the automotive and auto insurance industries. His work appears on sites such as Freeway Insurance, Auto Guide, Turn5, Mercedes Benz U.S.A., and Pelican Parts, with past and current roles as a digital operations manager at Pandora Media and iHeartMedia.