Having the right insurance coverage is important to protect your assets, but you don't necessarily want to keep the same insurance coverage forever. There may come a time when you want to switch to a different insurer.
If that's the case, you'll need to figure out how to switch car insurance. And if you are currently insured by State Farm, the first step will be to determine how to cancel State Farm auto insurance.
The good news is, there are multiple options for easily canceling your State Farm coverage. Here's what you need to know about how to cancel and some considerations before you move forward with doing so.
State Farm's cancellation policy
State Farm allows you to cancel your policy effective immediately upon request or at a specified date. In order to cancel your coverage, you will need to provide certain information, including your name, date of birth, and your insurance policy number.
Covered policyholders who are canceling because they have sold their vehicle may also be required to provide either a bill of sale or proof that you forfeited your vehicle's license plate.
State Farm doesn’t charge a cancellation fee, and you can cancel your coverage any time. If you have prepaid your insurance premiums, you can receive a prorated refund.
How to cancel your State Farm Insurance policy
You have three different options to cancel your State Farm policy. Here's what they are.
Cancel your State Farm insurance by phone
To cancel by phone:
- Find the telephone number of your local State Farm agent. You can use State Farm's website to find a local agent’s contact details if you don't already know the person you should contact. If you have an auto insurance policy, you can also call 800-STATEFARM, but you can't cancel other types of policies via this number.
- Provide the necessary details to look up your policy. You will need to provide your name, birthday, and policy number.
- Specify the date when you want the cancellation to take effect. You have the choice of canceling either immediately or setting a specific date in the future when you want your coverage to end.
- Provide any required documentation. If you are canceling your coverage because you sold your car, this could include documents such as a bill of sale or some type of proof that you turned your license plate in to your state. Or you may need to provide information about your new insurer if you're switching carriers.
- Notify the Department of Motor Vehicles (DMV) if required. Some states mandate you alert the DMV to any changes in your car insurance policy. Your insurance agent should be able to tell you whether providing notification to the DMV is necessary.
Canceling your State Farm insurance by mail
You also have the option to submit your request to cancel your insurance policy via mail. To cancel State Farm insurance via this method:
- Decide when you want your policy to end. You must mail your letter at least two weeks prior to the date that you intend to cancel your coverage.
- Write a letter including the necessary information. Include your name, address, phone number, and insurance policy number in the letter requesting cancellation of your policy. You should also specify the cancellation date. If you are changing to a new insurer, provide that company's name, as well as the date your new policy will begin and the new policy number.
- Provide any required documents. These could include a bill of sale or proof you forfeited your license plates if you're canceling coverage because you sold your vehicle.
- Sign and date your letter. Be sure to include your signature on the request for cancellation.
- Mail your letter. It should be sent to Corporate Headquarters; State Farm Insurance; One State Farm Plaza; Bloomington, IL 61710.
You will need to plan ahead more if you choose this method because you cannot cancel instantly when you mail your letter, unlike if you cancel via phone.
Cancel your State Farm insurance in person
Finally, you have the option to cancel your State Farm insurance coverage in person. To do this:
- Find your local State Farm agent. You can use State Farm's online tool to find agents in your area if you aren't sure whom to contact.
- Gather your information. Come prepared with your contact details, your policy number, and the date that you want your coverage to end.
- Obtain any required documents. If you've sold your car and no longer need coverage for it as a result, required documents could include a bill of sale or proof you've turned in your license plate.
- Visit your local office and inform them of your cancellation. It may be a good idea to contact your agent first to set up a time to come in.
Canceling in person can be done quickly, and your cancellation can be effective immediately.
If you have bundled policies with State Farm
If you have a home and car insurance bundle and you cancel one of your policies, this decision could make the others more expensive. That's because you'll be "unbundling" insurance, so you’ll lose any discounts that come from having multiple policies with the same carrier.
If you are switching all your bundled policies to a new insurer, be certain to let State Farm know about all the types of coverage you're canceling. But if you're switching only one policy, take the total costs of all of your insurance coverage into account when deciding on the best car insurance for you.
If another insurance provider offers you savings on your auto policy but making the change would make your homeowners or renters insurance more expensive, then switching your coverage may not be the right move.
How to be smart about switching car insurance
If you are canceling State Farm, it's likely because you're shopping for a different insurance policy. If that's the case, it's important to make the right moves when looking for a new carrier and making the transition.
To ensure your change in coverage goes smoothly:
- Gather the required information. You’ll need to provide the names, birth dates, and Social Security numbers for all drivers who will be covered by the new insurance policy. Providing your vehicle identification number (VIN) can also help you to get more accurate insurance quotes and will be necessary before you can get coverage.
- Shop around with multiple insurance carriers to get new quotes. It’s a good idea to get quotes from several companies so you can see which offers the best price on the coverage you need.
- Make sure you understand the coverage you need. If you want to replicate your current coverage, you can find out the amount of protection you have by reviewing the declarations page from your current insurer. If you don't have a copy of this, ask your provider for one.
- Compare apples to apples. When getting quotes from different car insurance companies, make sure each one is offering the same level of coverage. This means the same types of protection, such as bodily injury liability, property damage coverage, collision coverage, and comprehensive coverage. It also means the same policy limits, such as a $50,000 limit on bodily injury and a $10,000 limit on property damage.
- Provide your current insurer with plenty of notice. You'll want to let your existing insurer know you are canceling the policy so you don't end up paying for double coverage.
- Avoid a lapse in coverage. It's crucial to get new car insurance coverage in place before canceling your old policy. Going without insurance is illegal in most states, and it can also make your rates more expensive in the future.
By taking each of these steps, you can maximize the chances you'll be happy with your new coverage and maximize any savings that can come from switching carriers.
Can I cancel State Farm auto insurance online?
You cannot cancel State Farm auto insurance online. You can cancel via mail by sending a written request to Corporate Headquarters; State Farm Insurance; One State Farm Plaza; Bloomington, IL 61710 at least two weeks before you want your coverage to end.
You can also cancel your State Farm insurance via phone or in person by calling or visiting a local agent. You can find the contact details for State Farm agents using the insurer's online tool or can call 800-STATEFARM if you are canceling auto insurance only.
Is there a fee to cancel State Farm insurance?
State Farm does not charge a cancellation fee.
Does State Farm refund your money if you cancel?
If you prepaid premiums for a State Farm insurance policy and you cancel your coverage before the end of your policy term, you should be eligible for a prorated refund.
Can you cancel your insurance with State Farm anytime?
You can cancel your insurance with State Farm at any time. However, if you wish to cancel via mail, you will need to sign and mail your letter at least two weeks before you want your policy to end. If you cancel via phone or in person, you can specify the date of your cancellation, including making it effective immediately.
A State Farm insurance policy can be canceled via phone, in-person, or via mail. Just make sure you know that you'll lose any discounts in place for bundling insurance with the company if you cancel only one of your policies. And get your new insurance in place before canceling to avoid a lapse in coverage that could be costly.
If you’re shopping around for coverage, FinanceBuzz lets you compare auto insurance quotes quickly and easily.