How to Write an Auto Insurance Cancellation Letter

How to write an auto insurance cancellation letter is much less stressful than you think. Most auto insurance companies no longer require insurance cancellation letters since emails are so much faster. You are free to cancel car insurance coverage whenever you like although you may be subject to cancellation fees. Read our guide for an auto insurance cancellation letter template, and then enter your ZIP code below to find new car insurance coverage.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Jun 22, 2021

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How to write an auto insurance cancellation letter is much less stressful than you think. Some of the biggest insurance companies in the US no longer require insurance cancellation letters since emails are so much faster. You are free to cancel car insurance coverage whenever you like, although you may be subject to a cancellation fee. Read our guide for an auto insurance cancellation letter template, and then enter your ZIP code below to find new car insurance coverage.

So you’re breaking up with your car insurance company. Every day, car insurance policyholders across the country write cancellation letters to their car insurance companies. Today, we’re explaining everything you need to know about writing a car insurance cancellation letter.

Can you cancel your auto insurance policies whenever you like?

First, let’s make something clear: it is within your rights as a policyholder to put in a cancellation request for your policy at any time. You can contact your car insurance company and cancel your policy today if you like. Typically, the cancellation takes place within 30 days, although rules vary between insurance companies.

Check your car insurance policy to determine any cancellation rules. Your policy should have an entire section devoted to explaining cancellation policies. Sometimes, you’ll need to contact your car insurance company before sending a cancellation letter. In other cases, you don’t need to send a cancellation letter at all.

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Why should you cancel your auto insurance coverage?

People cancel their auto insurance policy for all sorts of different reasons. Some people cancel car insurance because they found better rates with a different auto insurance company, for example. Others cancel auto insurance coverage because they’re leaving for a long trip overseas, selling their vehicle, or no longer driving for any reason.

Do I need to write a car insurance cancellation letter?

In the early days of car insurance, formal cancellation letters were more common. You canceled car insurance by writing a letter of cancellation (and possibly paying an early termination fee).

Today, things have changed. Not all car insurance companies require you to request a cancellation in writing.

Some car insurance companies allow a policy cancellation over the phone by speaking with a customer service representative. Others require you to cancel online or over the phone and then send a cancellation letter.

Check your insurance policy document to determine your cancellation policy. Or, just contact your car insurance company’s helpline directly. Most are happy to walk you through the cancellation process.

Sometimes, you’ll need to mail a cancellation letter to your insurance company. In other cases, you can fax or email the letter. Again, check with your insurance company to verify how the cancellation process works.

Once you have verified that you need to write a car insurance cancellation letter, keep reading to discover everything you need to include in that letter.

What information should you include on a car insurance cancellation letter?

Your name and address (the name and address of the policyholder)

  • The name and address of your insurance company
  • Your policy number
  • Date on which you wish your car insurance to be canceled
  • Refund request for your remaining premiums

If applicable, include the names of any insurance company representatives at the top of the letter – like the insurance agent assigned to your case or the insurance agent assigned to your cancellation.

In the first paragraph of the letter, begin by making something clear: state that all charges for the policy must be terminated.

Next, write the date on which you wish your policy to be canceled. Then, request a refund of any overpaid premiums, if applicable. If you paid for 6 months or 12 months of car insurance upfront, for example, then you may be owed a refund on all remaining premiums. If your auto policy cancellation takes effect within 30 days, then you may be entitled to a refund on all remaining premiums beyond that 30 day grace period. State how you wish to receive your premiums – say, by check or direct deposit.

End the letter with ‘Sincerely’ or something similar. Type your name, then sign the document. Always sign the letter, even if the document has been typed.

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What does a car insurance cancellation letter sample look like?

Here is what typical sample cancellation letters should look like:

John Smith

5678 1st Street

New York, New York 11111

Best Car Insurance Company

1234 Second Ave., Suite #300

New York, New York 11111

Attn: Cancellations Department

RE: Car Insurance Policy #1234567

Hello,

This letter is a formal request to cancel car insurance policy number #1234567. Please cease all debits or charges for premiums payments. I would like my policy to be canceled on December 15, 2019.

I am also requesting written confirmation of the cancellation and the refund of any premiums. The cash value of the policy should also be sent with any returned premiums. This action needs to occur within a 30 day period from receipt of this letter.

Sincerely,

John Smith

[Your Signature]

5678 1st Street

New York, New York 11111

What is our conclusion?

Ultimately, writing a car insurance cancellation letter is straightforward. A letter for cancellation doesn’t have to be eloquent. It doesn’t have to be a work of art. It’s a fact-based service cancellation letter explaining a few basic things:

  • Name
  • Address
  • Policy number
  • Date on which you want your insurance to be canceled
  • Whether or not you want a refund for your remaining premiums, if applicable

Include all of these things, send the letter to your car insurance company, and your car insurance policy will be canceled as of that date. If necessary, make sure your new car insurance policy period starts on the effective date your old policy is scheduled to end. Otherwise, you could have a lapse in car insurance after sending your car insurance cancellation letter.

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