Can I End My Car Insurance Policy Early?

  1. 16470 POINTS
    David Osgood
    Agent, Rural Mutual Insurance Co., Union Grove, WI
    Auto insurance is an at will product. Which means that you are capable of cancelling it at any point in time that you wish. Please remember though if you have a loan on the vehicle that you may have a contractual requirement with the lien holder to carry a minimum level of coverage while the loan is outstanding. Also keep in mind if you cancel your coverage without securing coverage from another carrier immediately you may have difficulty securing coverage in the future.
    Answered on October 28, 2013
    flag this answer
  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    You can cancel an automobile policy whenever you wish.  The insurance company will notify the DMV.  The company will refund unused premium in one of two ways.  Some companies still use "short-rate" cancellation which imposes a penalty for cancelling before the policy term ends.  Most companies use"pro-rata" cancellation which charges just for the number of days coverage is in force.
    Answered on February 26, 2014
    flag this answer
    3. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>