Insurers will generally reimburse you for the unused portion of your policy, assuming you paid in advance. However, depending on your state and the time of cancellation, your insurer may charge a cancellation fee. If you cancel your insurance policy instead of suspending it, your insurance company will likely view this interruption as a lapse in coverage and that your insurance premium will increase. Most insurance companies will reimburse you for the remaining months of your unused insurance, or they will reimburse you for part of the amount you paid, depending on whether there are cancellation fees.
If you need to cancel your car insurance policy, the Bankrate guide can help you take the necessary steps to do so. Your insurance company may require a bill of sale before allowing you to cancel to show that you won't drive without insurance. Before you cancel your car insurance policy or have your insurance company cancel it for non-payment, make sure you understand the risks. Yes, you can cancel your car insurance at any time, regardless of whether you pay monthly or have already done so in advance.
If you take a break from driving for an extended period of time, some car insurance companies will allow you to suspend your car insurance. The insurance industry is highly regulated and every state has insurance statutes that govern how companies must handle reimbursements. Talk to a licensed insurance agent to learn more about how driving your vehicle without insurance might affect you. If you move to another state where your current insurance company doesn't offer coverage, you'll need to get a policy from an auto insurer that offers coverage in your new location.
Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results. Some auto insurance companies also charge a fee for canceling your policy before the policy term ends. It's usually easiest to change your car insurance company at the time your policy is renewed, but if you choose to switch in the middle of the policy, your current insurer will normally reimburse you for unused premiums, less cancellation fees. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer.
There are generally two types of fees that auto insurance companies charge for cancellation, fixed rates and short-term rates.