How to Cancel Your Insurance Policy

cancelling your insurance policy

It’s always a good idea to shop around for insurance quotes (especially around renewal time) to make sure you are getting the right coverage at the best price. If you find a cheaper policy that suits your needs, you can either see if your current provider is willing to drop their price, or you can cancel and move to a new provider.

If you’re looking to cancel your insurance policy, follow these steps to keep things quick and easy.

Steps For Cancelling Your Insurance Policy

1. Talk to Your Current Provider

As mentioned above, if you come to your current insurance provider with cheaper alternatives, you might be able to get your policy price reduced. If you’re still not happy with the price, you can let them know that you’d like to cancel. You may be asked to provide written confirmation, and the effective date of cancellation. Your coverage can not be affected until the effective cancellation date.

2. Have Your New Policy In Place

Before you cancel your current policy, it’s incredibly important that you have your new policy secured and scheduled. Any lapse in coverage could have serious legal and/or financial consequences.

Frequently Asked Questions Regarding Insurance Policy Cancellation

Why Do People Cancel Their Insurance?

There are a number of reasons why someone might be looking to cancel their current insurance policy. Some of the most common reasons are:

  • They find a better deal for the same coverage;
  • They’re unhappy with their current level of customer service; or
  • They no longer require insurance (ex. they no longer own a vehicle).

Can I Cancel Mid-Term?

The short answer is yes, but make sure you ask about cancellation penalties. Depending on the amount, it might be worth it to wait until your policy is set to renew.

If you do decide to move forward with a mid-term cancellation there are two ways it can roll out. If you pay your premium annually, you’ll likely receive a cheque from your current provider for the pro rated portion remaining (minus any cancellation fees). f you pay monthly, you’ll simply have to pay the cancellation fees.

Shopping Around For Insurance?

ARC Insurance Brokers is a full-service brokerage that is ready to help you with all your home, auto and commercial insurance needs. Get your free quote today to learn how you can start saving on your insurance today.