The best time to cancel your car insurance is after you have another policy set in place.

Can you cancel car insurance without penalty. You may have to pay a penalty if you cancel your policy before its expiry date. Most policies run on a yearly basis. You can legally cancel your auto insurance coverage at any time but some insurers will charge a penalty for early termination.

Depending on your situation there may be an additional withdrawal from your account to cover any missed payments or non-refundable fees. Ask for the specific cost of the penalty You may be surprised by how many insurance agents cite a penalty without even knowing its cost. In fact Progressive may offer a pro-rated refund on any premiums youve paid but havent used.

Yes if you choose to cancel your car insurance policy within the 14-day cooling-off period it is a legal requirement that youre granted a refund. When cancelling your auto insurance you should. Always factor in the financial impact before you do it.

Can You Cancel Mid-Term. A short-rate cancellation takes a certain amount out of the refund as a penalty for early cancellation. The most effective way to cancel vehicle insurance without paying a penalty is to not renew it when the policy has expired.

Check your policy for the specific steps you need to follow Contact your insurance company. So you can generally avoid fees by waiting until the end of your policy and then switching to another insurer. It still may be worth canceling your policy even if youll incur a penalty.

Common reasons for a lapsed car insurance policy include when you sell your car your car breaking down or. Receive confirmation of your policy cancellation after. Before you drop your coverage keep this in mind.