How to Write a Car Insurance Cancellation Letter

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.

You Can Cancel Car Insurance Whenever You Like

First, let’s make something clear: it is within your rights as a policyholder to cancel your car insurance 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.

Why Cancel Car Insurance?

People cancel their car insurance policies for all sorts of different reasons. Some people cancel car insurance because they found better rates with a different insurance company, for example. Others cancel car insurance 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?

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

Today, things have changed. Not all car insurance companies require you to cancel via a letter.

Some car insurance companies allow you to cancel your policy 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.

Information to 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 cancellation takes effect within 30 days, then you may be entitled to a refund on all remaining premiums beyond that 30 day 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.

Car Insurance Cancellation Letter Sample

Here is what a typical car insurance cancellation letter 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


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.


John Smith

[Your Signature]

5678 1st Street

New York, New York 11111


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

  • Your name, address, and policy number
  • The 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 starts the day 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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