Policyholders can cancel their car insurance policy at any time and for any reason. And you'll never have to wait until the end of your policy period to cancel it. Even if your policy started just a few days ago, you can cancel it. Sometimes the question arises: “Can I cancel my car insurance at any time?” The answer is that technically you can cancel your insurance policy at any time.
That said, you should consider your insurer's specific cancellation policy to know all the details. Otherwise, you may end up paying cancellation fees or losing your chance to get a refund for payments you made in advance. You can cancel car insurance at any time, even if you've purchased a 12-month policy. If you decide to cancel coverage, be sure to take appropriate steps to ensure that there isn't a gap in coverage.
Canceling your insurance will also cause an interruption in car insurance coverage, which may mean higher rates in the future. Keep in mind that canceling car insurance without having new insurance in place will cause an insurance gap in your history. Changing states is a good time to compare car insurance prices and quotes from at least three insurers to see if you can find the best rates for you. Car insurance companies consider drivers with a coverage gap to be more at risk, so they may charge you higher rates.
You could be held legally and financially responsible for any accident involving your car while you're selling it, which means that it's in your best interest to maintain your insurance. You generally need to get a new car insurance policy if you change states, even if you stay with the same company. If you cause an accident that damages your car, or if your car is damaged due to problems unrelated to the crash or is stolen, you will have to pay to repair or replace your car. Once you've determined your car insurance coverage, compare car insurance quotes from several companies and buy your new policy, noting the effective date of the new coverage.
This will show that the car is no longer in your name and that you are not legally required to have insurance. Canceling comprehensive and collision coverage means that your car is only covered if it is hit by an at-fault driver; in that case, the other driver's liability insurance would pay. If you're buying a new car, you can contact your insurance company to add your new car to your current car insurance policy. The reasons you might decide to cancel car insurance include finding cheaper rates with another insurer, moving to a new state, or even having an unpleasant experience with your current insurance company.
Most states require car owners and drivers to have liability insurance coverage, and some require additional coverage even for owners of cars who don't drive. If you cancel car insurance without getting a new policy, driving without insurance puts you at greater financial and legal risk. If your policy is canceled, you can look for a policy from another car insurance company, but be prepared to pay higher car insurance rates.