Does it cost money to cancel a policy?

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. Learn how to get a refund on car insurance. Since almost every state requires drivers to have liability coverage, you must have a current auto policy with another insurer when you cancel with your current insurer.

There's no need to cancel your car insurance after selling a car if you're driving a different vehicle. If calling your insurance company is impossible or unattractive, there are other ways to cancel your insurance. Depending on your insurance company, you may be able to cancel your policy by calling your insurer or agent. Whether you cancel by mail, fax, or email, you need to know how to write a car insurance cancellation letter.

However, there are a lot of reasons why a person could be in this situation, so you need to know how to cancel your car insurance policy and how much it will cost. Before you cancel your car insurance policy or have your insurance company cancel it for non-payment, make sure you understand the risks.