You can cancel your car insurance whenever you want, and for any reason. Most companies make it pretty simple – usually just a phone call or a quick written request can get your policy cancelled. And if you’ve already paid in full, you’ll get some money back.
Jerry has helped 126,451 drivers get car insurance in the last year, including plenty who canceled their old policy after finding something better. Here’s how to cancel it the right way.
Jerry pulls up to 20 quotes from top rated carriers.
Follow these steps to cancel your car insurance
Canceling isn’t complicated, but it does take a little planning. Follow these steps to avoid gaps in coverage or surprise fees. Or, if you’d rather skip the hassle, Jerry can compare quotes for you and cancel your old policy directly in the app.
📋 Check your current policy. Look for any cancellation fees, how to notify your insurer (phone, email or written letter), and your renewal date. Canceling at renewal typically avoids any fees.
🛒 Line up your new coverage. This is important: get your new insurance set up before cancelling your old one. Shop around, pick a policy and set the start date to match the day you’re cancelling.
📞 Contact your current insurer. Call their customer service hotline, submit a written request or work with your agent to cancel the policy.
📅 Pick your cancellation date carefully. Match it exactly to your new policy’s start date to avoid a lapse in coverage.
💵 Sort out refunds or final payments. If you prepaid for your entire policy, expect a car insurance refund, minus any fees you might owe. If you still owe money, pay it quickly so your account doesn’t end up in collections.
🗂️ Update your records. Notify your lender of your new insurer if you’re leasing or financing.
Jerry recommends: Don’t cancel your autopay until after the policy is officially canceled. If you stop payments too early, your policy could lapse for non-payment, which looks worse on your record than a regular cancellation.
Don’t let your coverage lapse
A lapse is any period without active insurance, and even a single day counts. Avoiding a lapse is the most important part of canceling your policy properly, since it can lead to serious consequences.What an insurance lapse can lead to:
⚖️ Legal trouble. Every state except New Hampshire requires car insurance. Get caught without it and you’re looking at fines, a suspended license or even losing your car registration.
💥 Potential accident costs. If you cause an accident while uninsured, you’re paying for everything out of pocket.
📄 SR-22 requirement. Some states make you file an SR-22 after a lapse, which is basically proof that you have insurance. It stays on your record for 3-5 years and can increase your rates.
🚫 Difficulty getting insured. Insurance companies see a lapse as a red flag. Some won’t cover you at all, and the ones that will might charge you more for it.
Key takeaway: Even a one-day gap in coverage can lead to fines and higher rates. Always have your new policy locked in before you cancel the old one.
Jerry can help cancel your old policy
Want to cancel your old policy and get a new one? Jerry can compare quotes side-by-side from over 50 insurers. Once you find a policy you’re happy with, we can also help cancel your old policy for you, directly in the app.
This way you’ll avoid a potential coverage lapse and find a new policy that fits your budget and needs.
Reasons to cancel your car insurance
People cancel for all kinds of reasons. Here are some of the most common:
🔄 Switching to a new insurance company. If another company is offering you the same coverage for less money (or better coverage for the same cost), it makes sense to switch. Just make sure your new policy starts the same day your old one ends.
🚗 Selling your car. Wait until the title transfers before canceling. If you’ll buy another car within a few months, consider a non-owner policy to maintain continuous coverage.
🏠 Moving to a new state. If your insurer doesn’t operate there, you’ll need a new provider. Even if they do, you’ll need to update your policy to meet the new state’s requirements.
✈️ Extended travel or deployment. If you won’t be driving for an extended period, ask your insurer if they offer storage insurance. This maintains continuous coverage history while reducing your premium. Not all insurers offer this, and you typically need to provide documentation.
💰 Rate increases. Before canceling, ask your current insurer about available discounts. If they can’t lower your rate, it’s worth finding a new insurer.
😞 Poor customer service. Research insurance companies by reading car insurance reviews before switching so you’ll have a better experience.
🚫 No longer driving. If you’ve stopped driving entirely due to health, location or lifestyle changes, you can cancel your policy.
Key takeaway: You can cancel your car insurance anytime for any reason. Just make sure you have new coverage in place first if you’ll still be driving. Gaps in coverage can lead to higher rates.
Alternatives to canceling your policy
Before you cancel, consider these options that could save you money while keeping your coverage history intact.
Ask about storage insurance
If you won’t be driving for an extended period, ask your insurer if they offer storage insurance, sometimes called “comprehensive-only” coverage, which protects your car while it’s parked. This maintains continuous coverage while reducing your premium since you’re only getting comprehensive coverage to protect your car while it’s not being driven.
Reduce your coverage
If cost is the issue, consider reducing coverage instead of canceling. Raise your deductibles, drop comprehensive and collision on older cars, or consider reducing limits to state minimums to lower your premium.
Get a non-owner insurance policy
If you’re selling your car but will still drive occasionally (renting a car or borrowing a friend’s), a non-owner policy provides coverage at a much lower cost.
Key takeaway: Canceling isn’t your only option. Storage insurance, reducing coverage, or getting a non-owner policy can lower costs while still maintaining your insurance history. This will help keep rates lower in the future.
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faq
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📅 Can I cancel my car insurance at any time?
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💰 Will I get a refund if I cancel early?
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⏱️ How long does it take to cancel car insurance?
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📊 Does canceling car insurance affect my credit score?
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🔑 What if I’m selling my car and not buying a new one?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
