How to Cancel Your Auto Insurance Policy

You can cancel auto insurance at any time for any reason, but you might get charged for canceling before the renewal date.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Written by Mathew B. Sims
Editor-in-Chief Mathew B. Sims

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 20, 2022

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Things To Remember

  • You can always cancel your current auto insurance policy, but you might not get a full refund when canceling mid-term
  • Canceling your policy can be done quickly and for any reason
  • It’s best to have a new insurance policy in place before you cancel to avoid inconvenience

Can you cancel insurance anytime? Yes, but it may cost you.

There are numerous reasons you might want or need to cancel your car insurance coverage before your policy renewal date. The good news is that you’re free to cancel your auto insurance at any time. Depending on the reason you cancel, you could be charged a fee for canceling early. 

And unless you don’t plan on driving anymore, you’ll need a new insurance policy in place right away. It’s a good idea to shop around for multiple quotes from different companies to ensure you’re getting the best price for your needs and that you don’t go uninsured. 

By making sure you have continuous coverage in place, you’ll avoid any inconveniences and prevent the risk of being caught driving without insurance.

Can you cancel auto insurance anytime?

You can cancel your auto insurance anytime, and you do not have to explain to the insurance company why you are canceling. 

You have the right to cancel your auto insurance when you want, why you want, and whenever you want. You don’t have to sell your vehicle, surrender your tags, or even give an explanation to your insurer when canceling auto insurance.

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Common Reasons for Canceling Auto Insurance

People cancel auto insurance before the end of their policy term for many different reasons. Here are some of the most common ones:

  • You sell your vehicle and don’t plan on buying a new one.
  • Your car is totaled, and you don’t plan on replacing it.
  • Your car breaks down, and you don’t need a replacement.
  • You lose your license or plan on surrendering it voluntarily.
  • You transfer ownership to a family member and don’t need insurance in your name.
  • You move out of state and need insurance from a new provider.
  • You want to buy insurance from a new carrier to save money and get more affordable rates.
  • You combine insurance with a spouse.

Whatever the motivation, if the time comes when you need to cancel your policy before the term is up, you’ll need to know your options and how best to handle the situation.

How to Cancel Auto Insurance

Many people wonder if they’ll pay a fee for canceling a car insurance policy early. Ending an insurance policy before it renews sometimes comes with a cancellation fee, but not always.

On the other hand, you may be eligible for a refund if you’ve prepaid for your entire term. 

Still, the only way to be sure of possible fees or penalties is by asking your insurance company about cancellation procedures.

The Best Way to Cancel Your Auto Insurance

Calling your insurance company is the quickest way to cancel your auto insurance. A customer service representative will ask you for a few details upon cancellation. This will include your current policy number and your new policy number, if applicable. 

Here is the contact information for the top insurance companies to help make canceling your policy simpler.

Insurance Company Telephone and Website Contact Information
CompaniesTelephone NumberWebsite
Property & Casualty Insurance Co. of
State FarmAgents
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Finally, you’ll receive a form stating the requested cancellation date, which you must sign and send to your new insurer.

Remember, very few companies allow online cancellations, but most allow for policy changes. Make sure you don’t confuse a policy change with a complete cancellation. You might find yourself without coverage rather than no longer paying for a specific service you no longer want.

Early cancellation is an easy process but can sometimes be expensive. If you’re facing pricey fees, it might be better to wait until your renewal period when you can cancel for free.

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Canceling Auto Insurance When Selling a Vehicle

Your policy will not be automatically canceled when you sell a vehicle. You need to inform your insurer and cancel your policy either over the phone or in writing. 

Be sure to provide the customer service representative or your insurance agent with a bill of sale when requesting a refund on the premiums you’ve already paid.

Canceling Auto Insurance: The Bottom Line

You can cancel your insurance policy at any time and for any reason. The best way to cancel your policy is in writing or over the phone, as most insurance companies don’t offer online cancellation services. It’s best to call customer service to ensure your policy is canceled, so you don’t find yourself paying for a policy you no longer need.

Before canceling your auto insurance, weigh the pros and cons. Prematurely ending your policy may result in cancellation fees. 

You may also be required to pay for the remainder of your policy, especially if you pay monthly. If this is the case, it might be best to wait and cancel your policy during the renewal time.

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