Your Auto Insurance Cancellation Letter must include your name, policy number, and the date in which you'd like to end your coverage. When selecting a cancellation date, make sure to pick a day after your new policy is set to begin to avoid a lapse in coverage.
In the digital age it can seem unnecessary to send a letter through snail mail. So why do some car insurance companies require a written request for cancellation? Well, the short answer is that your policy is an official contract.
Your policy is a legally binding agreement between you and your insurance policy. This means that your insurance company cannot cancel your policy if it's been active for more than 60 days. The only exception to this would be if you did something that would breach your contract. Insurance fraud, non-payment, or a suspended license can put your contract in breach.
Some insurance companies may accept a phone call or email as adequate notice of cancellation. Others will insist on a letter of cancellation.
Cancelling your car insurance is a big decision. Before you cancel, make sure to have a new policy lined up. Letting your insurance lapse is never a good idea. A lapse in insurance could have costly consequences.
When you are ready to cancel, call your insurance representative. Ask about what information you need to include in your letter. Confirm the mailing address as sometimes the one listed online is incorrect.
We've created a template to make it super easy for you. Just copy, paste, and fill in the blanks.
To Whom It May Concern,
Please accept this letter as a request for cancellation of my auto insurance policy, (policy number), effective (day after new policy begins). As of that date, I will be starting a new coverage plan with (new insurance company name), policy number (new policy number). Please put an immediate stop to all automatic payments from my account as of that date.
I am requesting written confirmation of the cancellation as well as a refund of any unused premiums. Both may be sent to me at the following address:
(City, State, ZIP)
If you have questions, please contact me at (phone number) or (email).
(Your full name)
Refund eligibility can typically be determined by how far in advance you paid for your insurance. If you prepaid for a 6 month or 12 month policy, you will likely have no issue when requesting a refund. If, however, you are on a month-to-month plan, you may not be eligible for a refund.
The only way to know for sure is to contact your insurance representative and ask for assistance. They are there to help!
Being uninsured for even a day can have expensive consequences. If you plan to own a car after you cancel your policy, you will need to have purchased a new policy prior to your cancellation date.
Be proactive about lining up your cancellation date with the date your new policy comes into effect. Letting your coverage lapse could result in liability for damages caused by an at-fault accident, as well as high premiums later on. A lapse in coverage on your record will earn you a label of "high-risk driver."
If you've made the decision to leave your current policy, it is time to start shopping for a new policy. You'll want to start immediately to give yourself the time you need to consider your options.
Where to start?