Are you planning to cancel your Allstate auto insurance policy? Ending your coverage doesn’t have to be complicated – so long as you make sure you understand and adhere to Allstate’s cancellation rules.
Otherwise, you could end up delaying the cancellation date and potentially paying for additional coverage.
Here’s the low-down on how to make everything go smoothly.
First, before you cancel
The best — and easiest — time to switch is before your renewal date or before your next monthly payment is due. Most insurance companies will let you cancel at any time. However, you may be subject to a cancellation fee.
If you fell behind in your payments or recently added a new vehicle, you may need to pay the remaining premium before canceling your policy.
Check the rules and follow them
While it may be tempting to just stop paying your old premium, be sure to contact Allstate first.
If you don’t notify Allstate, you will continue to receive bills. If the bills remain unpaid, the insurer will report your nonpayment to credit agencies. This, in turn, could impact your credit score, meaning you could face higher car insurance rates in the future.
Likewise, arrange your new policy before you cancel with Allstate. This is because a lapse in coverage could lead to expensive fines or loss of driving privileges. Your agent may ask for this information to process your cancellation.
Know your reason
Think about, and be ready to explain, why you’re canceling before you take any action.
For example, you might be canceling to get a better price. In this case, decide if you would want to stay with your current insurer if they could find you a better price.
If you’re not canceling to switch car insurance companies, things are a little different.
For example, if you’re selling your car, or not planning on driving things are pretty straightforward. If you’re moving to a new state, and require new coverage, shop around to figure out whether it makes sense for you to stay with the same insurance carrier or not.
How to cancel Allstate auto insurance
All insurance companies handle cancellations differently. Here are the steps to cancel Allstate insurance specifically:
- You must cancel your policy by contacting your Allstate agent. Allstate does not accept cancellations through any other method.To find the details for your Allstate agent you can find it via:
1. Your Physical or digital insurance card
2. The Allstate website
3. Calling 1-800-ALLSTATE (1-800-255-7828); available 24/7
4. The Allstate mobile app
- When you contact your agent, have your account number available.
- Contact your agent and tell them you want to cancel your policy.
- Submit a written request to cancel your policy to your agent, if requested.
- If required by state law, provide proof to back up the reason for your cancellation including a copy of vehicle bill of sale, new insurance policy or receipt of license plate forfeiture.
- Contact the following:
- Lienholder – generally drivers must maintain certain coverages such as comprehensive and collision if you are still making payments of your car.
- Financial institution – cancel any automatic payments
- State department of motor vehicles – Some states require drivers to report car insurance cancellations. You might also have to turn in the vehicle’s license plates and registration tags.
Other things to check before canceling
You won’t necessarily have to pay a cancellation fee. Your agent will provide this information. Most insurance companies generally allow you to cancel your policy at any time, as long as you give appropriate notice (often 30 days).
Check with your agent if you are entitled to a refund of any part of your premium. Typically, the entire unused premium will be refunded, though some insurance companies will charge a fee if you cancel in the middle of the policy term.
Obtain written confirmation of your cancellation from your agent in case there are any issues further down the line. If something goes wrong and you don’t follow up, the company could continue to bill you and may report you to the credit bureaus for nonpayment.
Determine your state’s legal requirements before contacting your insurance agent to cancel your policy. Most states require you have auto insurance for your vehicle to be registered or plated and even a short a gap in coverage can result in expensive fines or suspension of your driver’s license or registration.
If you are involved in an accident without insurance, you will be liable for personal injury and property damages that happens.
Getting the best rate when you switch
When you switch providers it’s a great time to reassess what coverage you need. Think about whether you have the right level of the different types of car insurance.
Auto insurance doesn’t have to be confusing. Let the Cover app do the work for you including finding the right level of insurance at a great rate.