Need to cancel your Geico auto insurance policy? Maybe you sold your car or found a lower premium at another company. Perhaps just want to consolidate all of your policies with one insurer?
Whatever the reason, before you cancel, make sure you understand Geico’s cancellation rules and follow the steps required to terminate your coverage. A gap in coverage for even a day could be very costly.
Reasons for cancelling auto insurance
There are many reasons for cancelling your policy with your current provider. You may be selling the car or no longer plan to drive. However, most people cancel their policies to switch car insurance companies.
Whatever your reason, if you cancel your auto insurance and still own a car, your coverage can be considered lapsed if you haven’t already obtained a new policy at another insurer. Auto insurance is mandatory in almost all states and you could face fines and encounter difficulties obtaining insurance in the future.
Geico’s cancellation policy
While all insurance companies handle cancellations differently. Geico’s policy is very straightforward and is outlined on its website.
How to cancel Geico auto insurance?
Geico only accepts cancellations by phone. The phone line is available 24 hours a day, 7 days a week. The steps are outlined below and are also available on the website:
- Call (800) 841-1587
- If prompted by the Interactive Voice Response (IVR) system, say “Cancel insurance policy” and then “Auto” and then provide your Geico policy account number
- The system will transfer your call to a licensed insurance agent
Does Geico charge a cancellation fee?
Geico does not charge a cancellation fee for early termination so you can cancel your policy at any time – cancel effective immediately or at a future date.
Will I receive a refund or owe money if I cancel?
- If you prepaid your premium, Geico will prorate the premium and refund the remaining amount
- If you fell behind in your payments or recently added a new vehicle, you will need to pay the remaining premium before cancelling your policy.
Payments related to cancellation must be made electronically or through Geico’s mobile app by the cancellation date. If mailing payment, it must be postmarked by the cancellation date.
Do I need to provide additional information?
If required by state law, Geico may request proof you:
- Forfeited your license plate to state department of motor vehicles
- Sold your vehicle
- Obtained new insurance policy
Not providing this information could delay cancellation and you will be responsible for paying for the additional coverage.
Can someone else cancel my policy for me?
Only the policyholder can cancel the policy. GEICO will not allow anyone else to cancel the policy unless the individual has power of attorney for the policyholder.
Anyone else to contact
In addition to informing GEICO, you also need to:
- Inform your lienholder
- Contact your state’s department of motor vehicles
- Cancel automatic payments set up with your financial institution
Things to keep in mind when cancelling your auto insurance
1. Know your state’s laws
Virtually every state requires you to have auto insurance for your vehicle to be registered or plated. Make sure you understand the legal requirements for your state before contacting your insurance company to cancel your policy.
Consequences for driving without current auto insurance vary by state, but a lapse of coverage could result in: risk of the following:
- Driver’s license suspension
- Registration suspension
- SR-22 insurance filing requirement
2. Inform the company of cancellation
Not only is it good practice to inform your insurer that you plan to cancel, but letting a policy lapse can cost you fines and extra fees. Your policy may auto renew and you will continue to receive insurance bills and, eventually, be marked for nonpayment.
If you don’t notify your carrier, it will continue to send bills, and likely follow those up with phone calls or letters. That will eventually stop, but the insurer could mark the account for non-payment, and report this to the credit agencies. You could also face higher car insurance rates in the future.
3. When to switch car insurance
The best and easiest time to switch is before your renewal date or before your next monthly payment is due. However, if you’re unhappy with the service or find a lower price, you can switch to another company at any time.
4. Buy a new policy before canceling current policy
A gap of even one day can be costly. If you cancel a policy without first putting a new car insurance policy in place, you can face:
- Liability for personal injury and property damages incurred by an at-fault accident
- Higher premiums in the future when you sign up
- If you have insurance lapses on your record, you’ll likely be seen as a high-risk driver and face higher rates overall.
5. Weigh options before cancelling
While you don’t need to tell the insurance company why you are cancelling, it’s always a good idea, especially if the reason is cost or dissatisfaction. Auto insurance is very competitive and companies want to retain as many customers as possible. Expect the company to try and keep your business by offering discounts or other incentives. To get a better sense of whether another insurer might be a better bet, try comparing Geico auto insurance reviews with other companies’ reviews.
6. Consider suspending policy instead of cancelling
Under certain circumstances, your insurance company may allow you to suspend your policy without cancelling. For example, GEICO allows military members to suspend their insurance if they will be storing their car for more than 30 days. Suspending coverage essentially pauses your policy without cancelling it. You can avoid being penalized for any lapse in coverage.
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 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.
Are you with a difference insurer? Read about other cancelling with other companies here: