When do I have the right to cancel car insurance?
You have the right to cancel your car insurance at any time, but you may be subject to fees by your provider based on your renewal and policy requirements. You have the right to cancel auto insurance coverage when you find better rates, when lost your license or are otherwise currently not driving, or if your insurance company isn't living up to your expectations. If you cancel your policy, comparison shop with our free tool below to find new affordable coverage.
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Written by
Jessica Sautter
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Reviewed by
Chris Harrigan
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UPDATED: Sep 21, 2020
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- Driving without insurance is illegal
- Most states require you carry at least liability insurance
- You have the right to cancel your insurance when you decide
Car insurance provides coverage for damage that may happen to your car.
Most states will demand you carry at least some amount of coverage. This is because even minor damage to your car can end up costing you thousands of dollars.
Causing an accident without having the means to pay for the damage can leave you liable to a lawsuit. However, there are circumstances that allow you to cancel a car insurance policy.
Enter your zip code in our comparison tool above and you will receive FREE car insurance quotes.
You are Not Currently Driving Your Vehicle
Canceling your insurance is a good idea if you are no longer driving the car. Going off to a college that doesn’t allow cars on campus could leave you stuck paying insurance on a car you do not drive.
Driving a convertible during the winter is not going to happen as well. Why pay for months when your car is in storage?
Canceling or suspending your policy allows you to skip payments until you are ready to drive that particular car again. Canceling your car insurance is not hard at all.
A simple phone call is generally all you need to restore the coverage on your automobile when you are ready to drive it again.
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Other Insurance Companies Have Better Offers
It is quite common to cancel an insurance policy to jump to another policy.
Drivers have the right to purchase a policy that provides the best coverage at the lowest price.
Your new provider may take notify your current provider on your behalf. Shopping around for a new insurance policy may be a good idea if you have a recent accident, ticket or DUI conviction on your record.
You Lost Your License
Losing your license will make it hard to drive a car. Therefore, you may choose to cancel your policy. It may also make sense to let your current policy lapse without renewal.
This will alleviate you of your need to pay for insurance that you are no longer using. Contacting your insurance provider as soon as possible may allow you to receive a credit for any unused portion of your policy.
The Insurance Company Won’t Meet Your Demands
You may feel as if your insurance company is charging too much for your policy. You could always find a new insurance company to do business with. However, you may decide that your current insurer should get a crack at keeping your business.
Compromising on the terms of your policy could get you a lower rate without having to switch providers.
Failure on the part of your insurance company to work with you on a new deal could cause you to cancel your policy.
Make sure you understand the process of canceling your insurance policy. Not following proper procedure may cause you to lose money.
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Don’t Drive if you Don’t Have Insurance
Driving without insurance is going to cost you more money on your next policy. Insurance companies will take this as another factor that proves you are an increased risk to insure. Keep the car in your driveway until you have proper coverage from another company.
You could face additional tickets and fines if you are caught driving without insurance. Some instances may require you to turn in your plates when you drop insurance coverage.
Not carrying insurance can also cause problems if you try to transfer a title or obtain a new registration on your vehicle.
Consumers have the right to cancel an insurance policy whenever they want to. The only condition is that a driver must purchase a new policy to keep the car on the road.
Failure to carry adequate insurance is a traffic infraction that usually leads to a ticket at the very least. Remember that just because you can cancel your current policy doesn’t mean you can skip on insurance altogether.
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