Depending on your insurance company, you may be able to cancel your policy by calling your insurer or agent. Some insurers may require you to sign a cancellation form. Since drivers must have a minimum amount of liability coverage for cars in almost every state, make sure you have another company before canceling your current policy. The best time to cancel your car insurance is after you've established another policy.
While you can cancel your coverage at any time, there are some cases where you may have to pay a penalty. For example, this is common if you cancel within 14 days of receiving your new policy. Grace periods usually extend your coverage by 20 days. If your policy is canceled due to non-payment, you will be billed for the grace period.
If you don't pay or provide proof of another active policy, the insurer could send your unpaid bill for collection. Keep in mind that if you're moving to another state, you won't have to change insurers unless your insurance company doesn't offer coverage in that state. If you move to another state where your current insurance company doesn't offer coverage, you'll need to get a policy from an auto insurer that offers coverage in your new location. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer.
Since almost every state requires drivers to have liability coverage, you must have a current auto policy with another insurer when you cancel with your current insurer. Not having car insurance can put you in a high-risk group in many states when it's time to buy car insurance again. Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results. If you have an outstanding loan or lease for a car, you should also notify your lender that you have changed insurers.
Because it's illegal to drive without insurance in nearly every state, your state's department of motor vehicles may ask you for proof that you sold the vehicle or that you obtained other insurance. Talk to a licensed insurance agent to learn more about how driving your vehicle without insurance might affect you. Learn how to cancel your car insurance in four easy ways and learn what happens when a policy isn't canceled correctly. If you cancel your insurance policy instead of suspending it, your insurance company will likely view this interruption as a lapse in coverage and that your insurance premium will increase.
Even if you intend to find a new car insurance company, not making the payments completely could result in a poor payment history and make it difficult to find affordable rates. Asking your new insurance agent to cancel your old insurance policy is an easy way to complete the cancellation. You may have to cancel your car insurance for a variety of reasons, but it's important to consider your plan beforehand so you don't have coverage. If you take a break from driving for an extended period of time, some car insurance companies will allow you to suspend your car insurance.
There are several reasons why you might want to cancel your car insurance policy, such as moving to another state or switching to a cheaper insurance company.
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