How long does it take to cancel an insurance policy?

How much advance notice should I give my insurance company before I cancel the policy? I want to shop for a lower rate and avoid early cancelation penalties. Is there a specific time frame I should go for?

Your instincts are right on point! Shopping for a new policy early and planning out your cancelation date in advance are both smart ways to save money!
Some car insurance companies have a cancelation fee if the customer cancels the policy during the policy term. To find out if yours does, call your agent or check your policy documents for their cancelation guidelines. That should give you an idea of what you’re looking at in terms of fees!
Here are some cancelation terms to look for:
  • Pro-rata cancelation. This is generally the best option. Pro-rata is calculated on a per-day basis, and means you can cancel anytime and only be charged for the time used on the policy.
  • Short rate cancelation. This means that you will be charged 10% of the remaining unearned premium of the policy.
  • Flat cancelation fee. This is a predetermined amount that all policyholders pay to cancel a policy. It is usually around $50, but that can change depending on the insurance provider.
If you have to pay a cancelation penalty, try to start your new policy the day your old policy is set to renew. This is a smart move since insurance policies canceled on the renewal date do not have any cancelation fees.
To make sure this transaction is handled properly, download the Jerry app. We’ll get you customized quotes from over 50 insurance providers—and once you’ve picked one, we’ll even help you cancel! Our agents will help you every step of the way, and if you have any questions, they’re available to text at all times.
Best of luck with canceling, and may all your rates be low!
Shannon Martin
Answered on Oct 25, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.

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