Perhaps you found a new insurer, got a new car, or lost your existing one, or maybe you’ve been late on your payments. There are many reasons you may want to cancel your Allstate insurance.
Regardless of what your reasons are, you may be wondering how to go about the cancellation. This post serves as your guide when you need to cancel your Allstate insurance policy.
What Are The Steps To Cancel Your Allstate Insurance?
When you cancel your Allstate policy, make sure to prepare the following:
- Your personal information, such as name, address, and phone number, and date of birth
- Your Social Security Number
- Your policy information
- Date and time you want your insurance coverage to end
- Information about your new insurance coverage (if applicable)
- Documents proving you sold your car (if applicable)
Cancel Through App or Website
The app and website of Allstate insurance are easy to use. They allow you to add, change, and even drop parts of your insurance coverage. However, they don't facilitate policy cancellation. You have to send a written request, call your agent, or sometimes both.
Cancel By Phone
You can call your agent about your policy cancellation request, which is the quickest way. You’ll be asked to provide all the information mentioned above.
In most cases, the cancellation of your policy will be in full effect right away when you do it via phone with your agent. But it’s better to ask for confirmation to avoid problems like paying additional fees.
Don’t forget to ask the agent if you need to submit any document or written notice to Allstate for a formal request to cancel your policy.
Cancel By Mail
Your agent may ask you for a written request, which you need to send by mail at least two weeks before the date you wish to cancel. The two-week period takes into account the time required for mail delivery and processing of your request.
Allstate Mailing Address:
Allstate Insurance Company
PO Box 660598
Dallas, TX
75266-0598
Cancel Via Allstate’s Local Office
You may also visit the office or branch of Allstate in your area and request to cancel your coverage in person. As much as possible, you should talk to your agent who handles your account.
What Is The Recommended Way To Cancel Your Allstate Insurance?
The best way to cancel your Allstate insurance coverage is by phone and talking to your agent. However, when you choose this option, you should expect the agent to try to convince you not to cancel.
Do You Need To Get Another Insurance Policy Before Canceling Your Allstate Policy?
You should get another insurance policy before canceling the coverage you have with Allstate. That’s because, in most states, it’s illegal to drive without car insurance.
Find car insurance that suits your needs and discuss the terms with an agent so you know what coverage you’re getting. Enroll in it before the cancellation date of your Allstate insurance policy.
Don’t forget to take note of the date your new insurance coverage will take effect because your Allstate insurance agent may ask for it when you request to cancel your policy.
What Are The Considerations You Must Take Into Account When Canceling?
Before canceling your insurance coverage with Allstate, there are a few things you need to consider.
Allstate Policy Renewal Date
You have to know the renewal date of your Allstate policy. You can log into your account online or call an agent and provide them with your policy number so they can check your renewal date.
It’s recommended to cancel your coverage once it’s near the end of its policy period. This way, you don’t have to worry about paying for overlapping insurance, cancellation fee, or driving for days without coverage.
State Laws About Car Insurance
You can’t drive without car insurance. Find out if your state will require you to provide proof that you have new insurance.
Make sure that there’s no lapse in your insurance coverage, especially if you drive every day to avoid legal problems.
Will You Need To Be Current On Any Missed Payment?
If you fell behind with your monthly payments, you may have to pay for any missed premium or the remaining balance before your policy can be canceled.
Read the terms and conditions of your insurance policy so you’ll be prepared for any related out-of-pocket expenses.
How Long Does It Take To Cancel Your Allstate Policy?
If you cancel by phone, the cancellation will take effect immediately. Ask the agent to confirm that your request has been processed.
However, if you request the cancellation by mail, it’ll take a few days or even weeks after Allstate receives your letter and processes your request.
The safest is to expect it to take around 30 days, which is the usual notice and processing period in most insurance companies.
When Is The Best Time To Cancel Your Allstate Policy?
The best and most convenient time to switch to a new insurance policy is before your insurance policy’s renewal date or before the date your monthly premium payment is due.
If you decide to cancel your policy mid-term, you may be eligible for a refund or be charged a cancellation fee. So, don’t forget to ask the agent about it.
Also, you should have a new policy in place before canceling your insurance plan. This will make sure that you have no lapse in coverage.
Driving without coverage is illegal, which could result in fines and penalties. If you get into an accident and you don’t have any coverage, you will be forced to pay for the costs of that accident out of pocket. Aside from that, it could raise your policy premium in the future.
Are There Any Cancellation Fees?
In most cases, Allstate insurance policyholders can cancel their coverage anytime free of charge. However, it’s best to check with your insurance agent since insurance laws vary between states and insurers may be required to impose a cancellation fee, which may range from $25 to $50.
In some cases, you may also be required to pay a short rate fee, which is a percentage of your insurance plan’s total amount. Generally, the short rate fee stands at 10%.
If you live in a state where early cancellation requires cancellation or a short rate fee, then it’s recommended to wait until right before the renewal date of your coverage to request the cancellation.
Moreover, if you recently added a new vehicle or fell behind with your monthly premium, you may be required to pay for the remaining balance before your policy can be canceled.
Should You Cancel Your Allstate Insurance Policy?
You need to ask yourself some important questions to determine if you need to cancel your Allstate Insurance policy. Think whether canceling your coverage is the best option you have and if you’re choosing a new policy that’s suitable for your needs.
You should consider canceling your coverage if you’re no longer happy with your current provider, or if you sold your vehicle. But if you still own the car and you’re just not driving it as often, you should consider reducing or pausing your coverage instead.
It will minimize the chances that you’ll be driving without coverage, which is illegal in many states. It may lead to penalties and even higher premiums if you get involved in a car accident.
If you’re looking to save money, you may find more affordable insurance plans at another provider. They may even offer you discounts as a new customer.
When you call an Allstate agent to cancel, they may offer you reduced premiums, bundle in extra coverage, or give you bonuses or rewards to keep your business. Consider adjusting your coverage with Allstate if you’re just looking to find cheaper insurance.
Will You Be Eligible For An Insurance Refund?
You may be entitled to an insurance refund on unused premium with Allstate if you decide to cancel in the middle of your coverage.
For example, if you decide to cancel your Allstate plan on December 15 and you’ve already paid for coverage until the end of the month, then you may be entitled to a prorated refund on the unused premiums.
However, the processes involved in refunding premiums will also depend on the insurance law in your state. Same as the cancellation fee, some states require insurance firms to give prorated refunds to their clients, while others don’t.
Conclusion
The best way to cancel your Allstate insurance policy is via phone through your agent who signed you up and handles your account. Allstate’s online platform and mobile app don’t offer cancellation features. It’s best to cancel your coverage right before its renewal date, and don’t forget to enroll in a new one to avoid a lapse in coverage. You may also be required to pay a cancellation fee or be eligible for a refund depending on your state’s insurance laws.
Aidan has been writing about personal finance for over 6 years. Prior to this, he worked as a Corporate Finance Analyst where he specialized in Due Diligence, Company Valuations and more. He is a CFA charterholder.
