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Updated April 10, 2024
Some car insurance companies prefer a phone call to cancel your insurance policy, but others may ask you to send a letter. For example, Nationwide and State Farm request a written notice of cancellation if you want to end your policy. A cancellation letter with a signature is proof that you initiated the request and the effective date of the cancellation.
Keep reading to learn five easy steps to write a car insurance cancellation letter, including a sample letter you can use to start the cancellation process.
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If you need to cancel your car insurance, follow these five simple steps.
The first — and possibly most important — step in canceling your insurance coverage is having another policy in place before starting the process. Getting your new car insurance policy before canceling your old policy ensures you won’t have an insurance lapse, which could affect your future rates and cause a claim denial.
You’ll need to include the following information on your insurance cancellation notice:
To avoid a coverage gap, be sure the cancellation date is the same day or after the new policy starts.
Your insurance company might be okay with you calling or emailing to cancel your policy, or it might ask you to submit your request in writing. In other words, you’ll need to write an insurance cancellation letter.
That’s why asking your insurer about its cancellation process is a good idea so you can meet your policy obligations and follow the procedures outlined in your insurance contract. That way, you don’t end up paying for two policies at once.
Now that you have your insurer’s specific instructions, policy documents, and information, it’s time to write your cancellation letter. Once you write the cancellation request, you can send it to the insurance company by email or certified mail, which provides proof that the insurer received the paperwork.
The template in the next section can be used to create a basic cancellation letter that meets most insurance companies’ requirements.
When you write your letter, ask your insurance company to confirm it has received your cancellation. Requesting and receiving this confirmation proves your insurer has received the cancellation request and the effective cancellation date in case you need to reference it later.
For example, if your next auto premium comes out of your bank account after you’ve canceled, you can request a refund from your insurer.
A cancellation letter isn’t difficult to write — it just needs to include some key information, such as your policy number, when your current policy will end, and when the new one will begin. If you have automatic payments, you’ll also want to include that.
But if you’re not sure where to start, here’s an insurance cancellation letter template you can use. Just copy the template and fill in the brackets with your information.
[Date]
To Whom It May Concern,
I am requesting the cancellation of my auto insurance policy, [policy number], effective [date new policy begins]. As of that date, I will be covered by [new insurance company name], policy number [new policy number]. Please stop all automatic payments or debits from my account as of that date.
I also request written confirmation of the cancellation and the timely refund of unused premiums. You can send both to me at the following address:
[Name]
[Address]
[City, State, ZIP]
If you have questions, don’t hesitate to contact me at [phone number] or [email].
Sincerely,
[Your signature]
[Your full name]
Consider using these tips to help you write and send your auto insurance cancellation letter:
You may be ready to cancel your car insurance policy, but here are some things to keep in mind before canceling:
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Still have questions about canceling your car insurance? Check out the answers to frequently asked questions about insurance cancellations below.
To notify your insurance company that you’re canceling, you can write a letter with your name, address, policy number, reason for canceling, and cancellation date. You can use a template (like the sample letter provided in this article) to help you write the letter; then, you’ll need to send it to the insurer to process the cancellation.
Some insurers require a written cancellation notice, but others may accept it over the phone or in person. Whichever method you use, remember to ask for a cancellation confirmation. If there are any issues processing your cancellation, you can use the confirmation as proof of your request.
A notice of cancellation is when a car insurance company sends you a letter informing you that it’s canceling your policy and why. Once your policy has been in effect for over 60 days, your insurer can cancel it if you don’t pay your premium, commit fraud, or misrepresent something on your application, according to the Insurance Information Institute (Triple-I).
Yes. You can contact your insurance company by phone, email, mail, or in person to start the cancellation process. Depending on your payment schedule, you may be eligible for a refund. But, in some situations or states, you might have to pay an early cancellation fee.
Sources
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She is a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications. She uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content to help readers make smarter insurance choices that have a positive effect on their budgets and finances.
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