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What Is Your Car Insurance Carrier's Cancellation Policy?

Canceling your car insurance policy is not complicated. If you’re at the end of your 6-month policy, you can simply switch to another carrier with no friction. If your policy has yet to expire but you still want to switch for whatever reason -- moving to a new state, found a better deal, etc -- you can certainly do that, but there may be small fees involved.

Below we endeavor to lay out all the facts for the major carriers and their cancellation policies, so you can make an informed decision about whether it’s in your best interest to make a switch now.

CarrierCancel FeeHow Much?Notes21st CenturyYes$50May vary by stateAAANoN/APro-ratedAllstateNoN/APro-ratedAmerican FamilyNoN/APro-ratedDairylandYesUnclearHidden, small feeEsuranceYes$50Pay 2 mos up front, they keep $50FarmersNoN/APro-RatedGEICONoN/APro-ratedGMACYes$0-$50Penalty varies by stateLiberty MutualNoN/A12-month policiesMercuryYes10% of remaning premium$30 penalty if still owe $300 on policyNationwideNoN/APro-ratedSafecoNoN/APro-ratedState FarmNoN/APro-ratedThe GeneralYes10% of remaining premium$30 penalty if still owe $300 on policyThe HartfordNoN/APro-ratedTravelersNoN/APro-ratedUSAANoN/APro-rated

Here are some additional things to remember when cancelling or switching your auto insurance policy.

To sum up: It’s no huge deal to switch your car insurance policy. Shop around for a new policy and if it’s significantly better or less expensive -- don’t think it’s overly complicated to make the move. Just follow the handful of steps outlined above and you should be fine.

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