Owner, Mosaic Insurance Alliance LLC, 2122 164th St SW Ste 301, Lynnwood WA 98087
You can cancel your car insurance at any time. Almost all companies will issue you a refund for any unused portion of your premium. For example, if your monthly cost was $100 and you canceled your policy 1 week after your last due date, you would get approximately 75% of your money back.
Please keep in mind, there may be state-specific penalties for canceling your auto insurance when you want to get another policy. Some companies in certain states may put you in the most risky driving tier because you have a gap in insurance coverage. Make sure to ask a trusted agent how this will affect your specific situation.
A little bit of additional advice. Call the insurance department in your state and ask them if all personal insurance in your state must be cancelled on a pro rated basis. This is the norm but not universal in a system that has 50 different ways of dealing with insurance in the 50 various states. So, the word from the Department of Insurance will cost you nothing other than the phone call and then you will be well equipped to move forward with your early cancellation.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
To be honest, I would suggest talking to your Insurance Professional about the terms and conditions of your particular policy. Specifically ask about the ramifications of a short term cancellation and discuss in detail the reasons you are considering this. Can it be done? Sure. Should it be done? Well, that needs a very well thought out answer. Most if not all states require that you maintain insurance as a condition of your car's registration. So cancelling a policy may result in a pretty tough fine. Your Insurance Professional will also more than likely tell you that insurance companies like drivers who maintain insurance consinuously. In other words, if you cancel then return with another car a month or so down the line, you will be able to buy new coverage, but it may be at a greatly increased premium.
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Please keep in mind, there may be state-specific penalties for canceling your auto insurance when you want to get another policy. Some companies in certain states may put you in the most risky driving tier because you have a gap in insurance coverage. Make sure to ask a trusted agent how this will affect your specific situation.