Can I Cancel my Auto and Home Insurance in NC?

We get asked a lot, can I cancel my car or home insurance before the policy is over? The answer is YES!

Many people think that they are locked into the policy term for their car insurance and home insurance. In North Carolina you may change your insurance company any time you wish.

Is there a fee to cancel my insurance? Maybe. Some insurance companies will write in the auto insurance policy that they will “short rate” your policy if it is canceled before the policy term expiration date.

How does “short rate” work? The insurance company will calculate how many days the policy was in force and use percentages in the personal auto manual to determine how much you owe or if a refund is due to you. Short rate cancellation is not a North Carolina law, but is part of the policy contract.

How do I know if I will be charged a fee? The best way to know for sure if your car insurance contract has a short rate clause is to contact your insurance company or your agent. Let them know what date you would like to cancel your insurance and they can calculate the short rate if there is one.

What do I need to do to cancel my car insurance? The first step is to secure your new car insurance policy. After you have secured your new policy contact your current car insurance company and let them know your new policy effective date. Each insurance company will have different guidelines to cancel your policy, they may ask you for evidence of your new policy, a signed statement that you are cancelling your policy or just a phone call or email. They will walk you through the process.

How long do I have to cancel my car insurance policy? In North Carolina you can retroactively cancel your car insurance policy up to 30 days with all standard auto insurance carriers. Do not worry if you forgot to cancel your car insurance the same day you got a new policy, if you call your insurance company within 30 days, they can end your old policy for the same day your new policy started.

If you have any questions about the process of switching your car insurance, call an Insurance Expert at Fairway Insurance & Risk Management. We offer free insurance consultations and no obligation quotes for all your insurance needs.