A consumer cancels his auto insurance policy by contacting his insurance agent with a phone call or a visit to the office. Cancellation usually requires a written request that includes contact information, policy details and the effective date of cancellation.
Before submitting the cancellation request, ensure a new insurance policy is in place to avoid a lapse in coverage. Failing to insure a vehicle can result in a fine.
Call or schedule an appointment with your insurance agent to initiate the cancellation. Some insurance companies use a standard cancellation form that includes policy information. The insured individual signs the form to consent to the cancellation. Verify the cancellation date before signing.
An alternative is to draft a cancellation letter to fax or mail to the insurance company. Include your name, address, phone number, policy number and cancellation date. Also include your signature and current date to make it official. State that you want to cancel the policy along with a reason for the cancellation.
After faxing or mailing, follow up with a phone call to ensure the company received and processed the request. You should receive a written confirmation no matter how you initiated the cancellation.
If you paid the policy in full, request a refund upon cancellation. Indicate this in the letter if you write your own. Check with your insurance agent for the refund amount if he handles the cancellation. Some insurance companies charge a fee for early cancellation.
If payments are still owed and the car is not being sold, the owner must inform the lien holder of any policy or insurance company changes. Additionally, be sure to cancel any automatic debits or electronic transfers that have been set up to make the insurance payments.
Check with the local DMV about state laws, as some require policy holders to notify the DMV as well, when cancelling auto insurance.