Does it cost to cancel car insurance?

Question

I have state farm insurance and I was wondering if there was a fee for canceling the insurance. Like with cell phones for example.

Answer 1

Sometimes.  Some states allow a cancellation fee, and most states allow a "short rate" cancellation charge, if you cancel outside of the renewal date.  The short rate ends up costing you about a month of insurance premium.

BUT, some states don't allow either.  So you'll have to check with your agent.

Answer 2

Never heard of one but all you need to do is cancel before the expiration date of the policy.  Most agencies are generally helpful but if you run into a bad situation, let us as consumers, too, know.

Answer 3

When you cancel car insurance - you are "short-rated" which means if you've JUST paid for the whole six months... and you decide to cancel... you will likely get approximately four months worth back.

It's compensation for commissions paid and administrative fees...

and it's not just at STATE FARM... all insurance agencies short-rate when you cancel

Answer 4

you'll only be charged up to the day you actually cancel your policy.  be careful, you don't want to not be covered... losing your license is the easy part if you get caught.

If you want some more information, I would check out...

http://www.safelinked.info/go.php?link=i...

Take care.

Answer 5

make sure you have ins with another company and then a phone call to cancel...

Answer 6

It doesn't cost anything at all.  If you're looking for new insurance, try using http://My-InsuranceSearch.com to compare car insurance rates for all the major providers in your area.

Answer 7

No - Depending on what state you live in, you'll probably have to send in something in writing and with your signature.  You should also get back any unused premium you have already paid. For example, if your policy was paid up until July, and you cancel it in May, you should get back about 2 months worth as a refund.  But you don't have to pay any cancellation fee.

Answer 8

Yes it can cost you to cancel.  Insurance companies in most states reserve the right to short-rate your return premium in the event that you cancel your policy.  A typical short-rate is 0.88.  However, if the company cancels you, then they are required to pro-rate any premium left on the policy.