How much is it to cancel your car insurance?
I want to switch insurance companies. How much will it cost to cancel my current policy?
The cost of cancellation depends on an insurer’s cancellation policy.
Most often, premiums are paid on a month-to-month or an annual basis. In these cases, you can usually cancel your policy without a fee, and will likely receive a refund for any unused premium.
If you signed a contract for a set period of time, you won’t have to pay for the unused time in your contract, but you will likely have to pay a cancellation fee. Cancellation fees might be a flat amount listed in your contract, or it could be a short rate, which is 10% of the unearned premium.
Review your policy contract to check for any cancellation fees and notification requests. If you give your insurance company enough notice before the renewal date, they may not charge you a cancellation fee at all.
Keep in mind that canceling your insurance on the correct effective date of your new policy is crucial. If you end up canceling your old policy before you start your new one, you may end up having a lapse in coverage, which can cause your premium with your new insurer to rise.
If you are looking for ways to save on car insurance, try using the Jerry app. Jerry compares quotes from 50 of the top insurance providers and will even help with all of the paperwork necessary to set up your new policy. And the best part–Jerry does all of this for free.
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