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The TRUTH about Canceling State Farm Car Insurance
If you are insured with State Farm and find yourself needing to cancel your car policy, there are some things you should first consider. While there are a few reasons you may need to cancel your car insurance policy, there may also be some alternative options. Keep reading to learn how to navigate canceling your car insurance with State Farm.
Before you cancel your State Farm Insurance policy, there are a few things we recommend you consider first:
Do You Have New Insurance?
First and foremost, you should obtain a new insurance policy before canceling your existing one. There are a few reasons for doing this. One reason is that a primary rating or eligibility factor for most insurance companies is prior lapses in coverage. What this means is that if you have had any time where you did not carry auto insurance, insurance companies can charge you more money or decline to write you a policy altogether. As such, it is recommended that you start your new policy effective the same day as your prior policy’s cancellation date to avoid any potential lapses. For example, if your new insurance policy starts on 01/01, you will also want to cancel your State Farm policy on 01/01. Doing so will ensure your auto prices will not be impacted going forward.
In addition, many states require you to have insurance on a car that is actively registered. You must keep your insurance active if your registration is still active. Otherwise, you may be subject to various penalties or fines.
Lastly, if you are financing or leasing your car, your lien-holder will most likely require you to have continuous coverage. In most cases, they can force place coverage on your car, which is considerably more expensive than just continuing your insurance.
Why Are You Cancelling?
Next, you should consider the reasons you are looking to cancel your policy. There are some situations where a total cancellation of your policy isn’t necessary. Here are some common reasons for cancellation and possible alternatives.
I Have Moved
You may need to cancel your auto policy if you have moved to another state. However, State Farm is licensed to write insurance nationwide! Before you cancel your policy altogether, ask your agent about getting a new policy in another state. This will often allow you to retain your tenure with the company, which can also save you money.
I’m No Longer Driving
No longer driving your car is not a sufficient reason to cancel your auto policy. For one, if the car is going to remain registered, your state may require you to keep the car insured. So, it’s best to check with your state’s registry of motor vehicles to confirm. Secondly, even if your car is just sitting in your driveway and not being driven, it can still be damaged. Your car can be vandalized, stolen, damaged by hail, etc. Talk to your State Farm agent about options for insuring your car while in storage. There may be ways to lower the price of your insurance while still being covered for anything that could happen while your car is not being used.
I No Longer Have My Car
Before you cancel your car, consider when you might be getting a new one. Maybe your car has been totaled, and you haven’t gotten a new one yet. Or perhaps you have sold or gifted your car. If you’re getting a new car within the next 30 days or so, you’re better off keeping your policy active in the meantime. It is generally less expensive to replace a car on an existing policy, and you won’t have any lapses in coverage, which can impact your future premiums with any other company. You can also call your State Farm agent to get an idea of how to save money in the meantime while you’re between cars.
I’ve Had a Change in Marital Status
Getting recently married or divorced doesn’t necessarily mean you must cancel your auto policy. You can either add or remove your spouse from your policy. Combining policies with your spouse will typically lower the price of your policy due to multi-driver or multi-vehicle discounts offered by many insurance companies. And removing a driver if you have gotten divorced will allow you to keep your policy tenure and any discounts with your current company intact.
The Price is Too High
Price is definitely a critical factor to consider when it comes to auto insurance. If you cannot afford your policy or think it’s too high, give State Farm a call. There may be applicable discounts you are eligible for or coverages that can be adjusted to bring the price down. If you have gotten quotes for less money from another company, make sure you were quoted the same coverages. Your State Farm agent can help you compare to ensure you aren’t sacrificing coverage.
I’m Bundling My Car/Home Policies
Bundling your insurance policies with one company is a great idea. It provides you the ease of one bill and one company to keep track of. Did you know State Farm offers other lines of business as well? In addition, State Farm offers multi-policy discounts for bundling, so it’s a good idea to get quotes for your home/renter’s policy first to see how much you can save.
I Don’t Like My Agent
If you have a concern with your State Farm agent or want to work with a different one, you can switch to another agency without hassle. Contact the new State Farm agent you would like to work with; they can take care of the rest!
How to Cancel
If none of the above alternatives apply to you, or if you want to cancel your policy anyway, State Farm provides a few different options.
You can either call your local State Farm agent or call State Farm directly at 800-STATEFARM to cancel your auto policy. Please note that if you have additional policies with State Farm, you will need to contact your local agent for assistance. You may only call State Farm directly if you are looking to cancel an auto policy. Select option 3 in the State Farm IVR for existing customers and follow the prompts for policy changes. Be sure the primary policyholder is available if that is someone other than yourself. Only the person who owns the vehicle can request a cancellation, so make sure they are around for the phone call.
Also, be prepared with your new insurance company’s name, effective date, and policy number if you are switching carriers. You may be asked to provide this information. If you have sold your car, you may be asked to supply a plate return receipt to confirm the registration has been canceled. So, it’s a good idea to have these items available before making the call.
If you prefer, you can cancel your State Farm policy by mail as well. To request a cancellation by mail, include your full name, policy number, the reason for cancellation, and the date you would like the policy to end. If you’re switching insurance companies, also include the name of the new carrier, policy number, and effective date. If you have sold your car, attach a copy of the plate return receipt from the registry with your request. Next, sign and date this request and mail it to the following address:
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Please note that the cancellation can take up to two weeks to process, depending on mail delivery. If you need your policy canceled and any subsequent refund sooner, this is not the best option for you.
You may also cancel your State Farm policy in person with your local agent. Similar to the other options, you may need to provide either a plate return receipt or your new insurance company’s name and policy number. Be sure to have those on hand if you choose to cancel your policy via this method.