Cancelling Auto Insurance Policy

There are various reasons for cancelling auto insurance policy – you have received auto insurance quotes that are cheaper than your current policy, you are moving to a different state, because you will no longer be driving or if other circumstances warrant the need to cancel an insurance policy and cancelling the auto insurance policy is really quite simple.


In most cases, it is enough that you submit a policy cancellation letter informing your carrier that you are cancelling the policy. You can also cancel it by calling your insurer on the phone and providing the same information you would provide in a letter. In case you are switching policies, your new insurance company may even cancel your old policy for you.

Canceling your auto insurance policy via letter is easy, you will avoid confrontation, and it only takes couple of minutes. It also provides documentation of your request in case there is a dispute later.

You can also fax your letter to the insurance company’s customer service department.

Make sure you send it to the company’s customer service address or your cancellation request may be delayed or even ignored. Your letter should include today’s date and your auto insurance company’s address and the subject line of your letter should include your insurance policy number, so all the data are clear and visible to your insurance officer. You should be able to find the information on insurance company on your policy paperwork.

The purpose of your letter should be stated in a manner that you wish to cancel your auto insurance policy (or any policy for that matter) and be sure to state the date you want the policy canceled on. It can the same date you’re writing the letter, or even a date in the past, or a future date within reason. This is because when people switch from one insurance carrier to another, they want to make sure the new policy is in force before they cancel the previous insurance policy. If your new policy begins on November 1st, make the cancellation date for your old policy October 31st. Insurance companies often prefer customers who have been continuously insured.
You should request in your letter that the insurance company refunds the unused portion of your premium (although the insurance company should do this automatically) if there is any. Don’t forget to include your full name, address, and phone number to help the insurance company identify you, your policy and contact you if necessary.

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