Can I cancel my Auto and Home insurance midterm? Will I get a refund? How will this affect my insurance? These are some of the most common questions we get after we tell a potential client we are getting them a WAY better deal. We want to clear the air so you can be informed.
What is my policy period and when does my policy renew?
Your auto insurance policy is likely a 6 month or 12-month policy while your home or renter’s insurance policy will likely be a 12-month policy. At the end of your policy period most carriers will automatically renew your policy by sending you a renewal notice which includes the new premium your policy will renew at. If you are on “auto pay” it is likely your policy will auto renew at the end of the policy period unless you act.
When can I cancel my policy?
Short answer is, AT ANY TIME.
You can cancel you Auto, Home, or really any property and casualty insurance policy you have AT ANY TIME! It does not matter if you are in the middle of your policy term or not. The company you cancel with will give you a PRO RATED refund sent directly to you or deposited back into the payment type they have on file.
How can I cancel my policy?
There are 2 simple ways you can cancel your current insurance policy.
- Call your current insurance agent and verbally ask them to cancel your policies.
- Send a written request to cancel your insurance policy SIGNED BY YOU. (This can be facilitated by your new agent)
There are many insurance agents out there who try to require that you send them proof of new insurance, declarations pages, or tell them the new price and coverage you have obtained but this is not necessary. If you come across a situation like this alert your new insurance agent and have them help you. There are two courses of action you can take if your current agent is holding your policies captive and won’t cancel them.
- You can call the insurance carrier directly and cancel with them effectively going around the agent.
- **Worst case scenario. You can let your current agent know you will be reporting them to the Department of insurance for failure to cancel your policies after a written request. This usually gets their attention!
How will this affect my insurance and what action is needed by me?
This is a great question because the answer is simple. Your insurance is not negatively affected by switching midterm ESPECIALLY if it is a better deal with better coverage. Usually there is only one instance when you will need to do anything and that is when you switch your home insurance.
Switching your home insurance is extremely simple if you pay for it through your escrow/ it is included monthly mortgage (this is the most common way if you have a mortgage on your house). THE ONLY thing you will need to do is when you are sent the refund check by your old insurance company you need to take that check and APPLY IT TO YOUR ESCROW account. Your mortgage company will adjust your mortgage to account for the new insurance cost automatically.
In conclusion if you find a better deal TAKE IT. There is no reason to wait until your renewal you can switch at any time, get a prorated refund, and start your better new insurance policies whenever you want!!