How to Stop Insurance

Send cancellation notification in writing to the insurance company.
Send cancellation notification in writing to the insurance company. (Image: Jupiterimages/BananaStock/Getty Images)

Switching insurance carriers or canceling an old unneeded insurance agreement is a simple process but one that should always include a request in writing. Some carriers will not accept a cancellation of insurance over the phone and require a written record of the transaction. Some insurance agents will help with this process when switching over to the new company by providing an easy form to fill out and faxing it directly to the old company on behalf of the policyholder. Ask about this service when shopping for new insurance.

Things You'll Need

  • Insurance agreement
  • New policy declarations page

Ensure you have another policy shopped and ready to go in place of the canceled policy if there is a continued need to insure your car, home, self or business. Any lapse in insurance can cause a rating up of a new policy.

Obtain a fax number or the address to mail your cancellation request to from the insurance agent or representative. The agent information is usually found on the declarations page of most insurance agreements.

Put your cancellation request in writing in addition to calling to inform the insurance company of the date of cancellation. Include the policy number, named insured, effective date of the cancellation and, if desired, the reason for the cancellation request.

Add the correct address for the insurer to mail any premium refunds to for previously paid, unearned premium. Some insurance companies, such as surplus insurers for commercial insurance, do not refund premiums even in the event the policy does not go to term.

Ask the carrier to send the refund amount immediately with no delays and make note of the expected refund amount. Some companies have an automatic time period that they wait after cancellations--such as two to four weeks--prior to issuing payment.

Include a copy of the new insurance agreement declarations page if one is obtained to the carrier along with the request for cancellation. This can stop last-minute badgering phone calls from the insurance agent for a policyholder to keep the insurance in place.

Tips & Warnings

  • Shop rates with four to seven insurance companies to obtain the most competitive insurance rate if planning on replacing the old policy with a new one.
  • Some insurance companies provide cancellation request forms that are easy to fill out. Ask an insurance representative to fax or mail one if there is time to wait for it prior to cancellation.
  • Keep a copy of the cancellation request with insurance paperwork for quick access in case of delays.
  • File all claims that occurred during the policy term prior to cancellation.

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