Switching insurance companies is a great way to get your premiums down — so long as you cancel your old coverage the right way.
A gap in coverage for even a day could prove costly, so follow these simple steps and you’ll be set.
Each company, State Farm included, has its own process to follow. Whatever the reason for cancelling, here are the general steps you’ll need to follow.
First, before you cancel
When to cancel
Consider timing when cancelling your policy. 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.
Switching to another insurer
If you are switching car insurance providers, make sure you have another policy in place before you cancel. Auto insurance is mandatory in almost all states. If you have a gap in auto insurance coverage for even just one day, you could face expensive fines, lose your driver’s license and impact your driving privileges. encounter difficulties obtaining insurance in the future.
State Farm may ask for proof you sold your car or obtained an insurance policy at another company when you cancel. It’s a good idea to have this available when you call to cancel.
Reasons for cancelling
The company will probably ask why you are cancelling. Ensure you are clear about the reason you are cancelling your policy before contacting State Farm. People cancel insurance policies for many different reasons:
- Moving and/or purchasing a new vehicle
- Selling or disposing of your car
- Car has been totaled
- Extended restoration of your vehicle
- No longer plan to drive your vehicle
- Life change
- Dissatisfied with your current insurance provider
- Found a better deal
How to cancel State Farm auto insurance
State Farm requires customers to cancel their insurance policy through their individual State Farm insurance agent. This requirement applies to all State Farm insurance policies, not just auto insurance. As is the requirement when purchasing a policy, you cannot cancel your policy through any other method.
Your agent will explain the requirements and process the cancellation and may require written confirmation of the cancellation. If you don’t have your agent’s contact information or need a new agent, you can search on State Farm’s website, through the State Farm Mobile App or by calling State Farm Customer Service at 855-733-7333.
Does State Farm charge a cancellation fee?
State Farm does not list their cancellation policy on their website and does not provide any information regarding cancellation fees. Contact your individual State Farm agent or State Farm customer service (855-733-7333.) for questions about the cancellation policy.
If required by state law, your State Farm agent may request proof you:
- Forfeited your license plate to state department of motor vehicles
- Sold your vehicle
- Obtained new insurance policy
Note: While State Farm does not post their cancellation policy publicly, most insurance companies generally allow you to cancel your policy at any time, as long as you give appropriate notice (often 30 days). 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. Do not make any assumptions about cancellation and refunds, confirm with your State Farm agent.
Other considerations when cancelling auto insurance
Who else to contact
In addition to informing State Farm, you should also contact your lienholder and state’s department of motor vehicles. Also, ensure you cancel any automatic payments set up with your financial institution
While you don’t need to tell the insurance company why you are cancelling if your policy term is expiring, 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 State Farm 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 State Farm auto insurance reviews with other companies’ reviews.
Know your state’s laws
Most states require you 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 agent to cancel your policy.
Consequences for driving without auto insurance can vary by state, but a lapse of coverage even just for one day could result in fines and suspension of driver’s license or registration. If you are involved in an accident while uninsured, you are subject to arrest. You will be liable for personal injury and property damages incurred by an at-fault accident. In addition, with have insurance lapses on your record, you will be classified as a high-risk driver and face higher insurance rates.
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: