Having an auto insurance policy is non-negotiable for all car owners. But what happens when you wish to switch to something better or have trouble keeping up with premiums?
This is usually the case with GEICO auto insurance policyholders, and you’re now facing the same dilemma.
You’re likely hesitant about getting out of it due to possible fees and penalties. We've looked into GEICO’s cancellation policy and searched through both official and non-official sources to know how best to get you out of your policy so you can stop paying premiums.
You might be breaking state laws around having an insurance policy if you cancel your GEICO insurance too early. You'll keep yourself and your car unprotected without new insurance and you might be facing penalties for canceling prematurely.
Keep reading and we’ll tell you when is the best time to cancel your GEICO policy and whether you have to pay anything.
Let’s dive in!
How To Cancel Your GEICO Car Insurance Policy
Canceling your GEICO Insurance Policy is not as difficult as it seems. Here’s what you can do:
Call Over the Phone or App
If you’re looking for the best method, this is it! Their customer service is available 24/7, all days of the week, and your cancellation will take effect immediately.
Follow these easy steps:
- Step 1: Call GEICO at 1-800-841-1587 or through the mobile app. You’ll be connected to a licensed agent. If you’re still unsure about canceling your policy, this will also serve as a chance to negotiate for a better deal.
- An automated phone system will likely answer you, so make sure to respond by saying “cancel insurance policy.” You will then be asked to dictate what type of policy, so simply say “Auto.” You will then be asked to read out your policy number, and an agent will attend to you shortly.
- Step 2: If you’re sure about moving forward with cancellation, be firm about your decision. Let the agent know when you want your GEICO policy to be canceled.
- Step 3: Ask about how you can receive your cancellation information, which can either be through mail or email. You’re all set!
Things to Prepare:
- GEICO policy number
Cancel by Mail
If you wish to cancel your policy by mail, follow the steps below:
- Step 1: Understand that you must send the letter 30 days prior to your intended policy cancellation date. This allows GEICO enough leeway to request more information and follow your requested cancellation date.
- Step 2: Research which GEICO address will work best for correspondence. Keep in mind that this will depend on where you live in the United States, so visit GEICO’s mailing address page.
- Step 3: Once you’re on the page, select Auto Insurance and the state where your current policy has been written.
- Step 4: You will be given three different addresses: late payment address, correspondence address, and the typical payment address. Make sure to send your cancellation letter through the correspondence address.
- Step 5: Begin writing your cancellation letter. Include proof that you have already surrendered or transferred your license plate. You will also need to mail a bill of sale or proof that you already have an existing insurance policy from another company. Include your policy number, full name, address, and contact number.
Things to Prepare:
- GEICO policy number
- Cancellation letter
- Proof of surrender or transfer of license plate
- Bill of sale or any other proof of another insurance policy
Can You Cancel Online?
Unfortunately, GEICO Insurance currently doesn’t offer online cancellation. You will need to either speak to an agent to cancel your policy.
Do You Need to Provide Additional Information?
Additional information may be required depending on current state law, but make sure to prepare the following items if it applies:
- Proof that you have sold your vehicle
- Proof that you have forfeited your license plate
- Proof that you’ve invested in a new auto insurance policy
Note that failure to provide these can delay your GEICO cancellation request. In other cases, you may have to pay additional fees.
Why Would You Cancel Your GEICO Insurance?
Most of the time, a GEICO insurance just isn’t a good fit, no matter how good it may be. Thankfully, GEICO cancellation is simple and painless! If you have the following valid reasons per the GEICO termination policy, you can opt to cancel:
- You’ve experienced poor customer service.
- You wish to purchase a new car or sell your old one.
- You’re having difficulty paying the premium due to financial struggles.
- You want to have access to better insurance rates.
- You need to relocate to a new state.
- You simply wish to switch to another insurance provider.
Are there any alternatives to canceling?
If you remain unsure about your cancellation, GEICO offers flexible solutions. However, these will depend on specific circumstances.
If you’re one of those who wish to change their marital status, for instance, you might be given special consideration. They may also accept your other requests like coverage for cars in storage.
To learn more about possible alternatives, it always pays to contact a GEICO agent directly.
When Is the Best Time to Cancel Your Insurance Policy?
The reasons listed above state why you need to cancel your insurance, but when is the best time to do so?
Keep in mind that timing is everything as you need to have a safety net before the effective cancellation of your GEICO insurance.
There are laws that make it illegal to drive without insurance depending on your state. More importantly, the road can be unpredictable—are you willing to take that chance?
That said, make sure that your timing is right. The best time is when you already have a new coverage that can take effect upon your cancellation with GEICO.
Also, keep the following instances in mind:
You Need to Move
If you have relocated to a state not covered by your GEICO insurance policy, you will need to request a cancellation. However, make sure to do so weeks prior to your moving date.
You Sold Your Car
If you’ve sold your vehicle and no longer wish to own one, you must cancel your auto insurance.
However, make sure to wait for the new owner to take possession of the car and for the official transfer of the title. In doing so, you avoid losing coverage.
You Want Better Rates
It’s always good to look for something better, so if you wish to switch insurance providers for better value for money, it’s best to cancel your existing GEICO coverage.
You can request a cancellation date for GEICO coverage that will coincide with the start date of your policy with the new provider.
What Is GEICO's Cancellation Policy?
Before finalizing your decision to cancel, it’s important to consider possible fees, refund policies, and others that may affect the process.
Cancellation Fees
GEICO doesn’t charge any cancellation fee. So it’s easy and convenient to cancel your insurance policy with them. Just call them over the phone as we mentioned above.
Refunds
Upon purchase or renewal of GEICO auto insurance policy, you’re automatically bound to either a contract of six months or one year.
If you paid for the policy in full, you would be entitled to a GEICO refund covering a portion of your premium.
The amount will be based on the effective date of cancellation and the original policy term expiration.
If you have chosen to make down payments and pay subsequent monthly payments, however, you may be asked to pay for a prorated rate up to the effective cancellation date.
GEICO doesn’t specify how long a refund process takes. You may end up waiting for up to 30 days if you’ve paid using a check.
For cash, debit, or credit cards, expect to wait at least a week. For the best possible results, contact your agent.
Alternative Insurance Policies to GEICO
Now that you’re ready to cancel your GEICO insurance, remember that not having insurance coverage is illegal under federal laws. So make sure that you get one immediately.
Here are some alternative insurance providers to consider:
1. Liberty Mutual
Liberty Mutual offers a “pay for what you need” policy as part of its commitment to creating a product where clients feel secure. It allows you to create personalized auto insurance, ensuring that your coverage responds to your changing needs.
Liberty Mutual is also known for its discounts, but keep in mind that due to its service and coverages, it can still be considered expensive.
Based on data available on its website, its standard coverage only encompasses the following:
- Medical Payments
- Bodily Injury Liability
- Property Damage
New Car Replacements, Accident Forgiveness, and the in-house Liberty Mutual Deductible Fund® are considered as add-ons.
Cost and Discount Details
- Average monthly cost: $245
- Discounts offered: Homeowner, student, safety device, safe driver telematics, accident- and violation-free, full-payment, multi-policy, multi-vehicle, and more
Clearcover Inc.
Clearcover Inc. offers affordability and full control over your coverage. Although offering no discounts, it ensures that you get the lowest possible rates for your needs.
It’s known for its quick and painless insurance claims, making it the best in customer service.
Based on the data and reviews available online, its standard coverage encompasses the following:
- Liability (bodily injury and property damage)
- Medical payments
- Collision and damage repair
- Uninsured motorist (bodily injury and property damage)
Cost and Discount Details
- Average monthly cost: $127
- Discounts offered: Only military members can get further discounts
Nationwide
If you’re a car owner worried about credit score, Nationwide is the best option. It’s committed to providing clients with peace of mind, after all. It offers the lowest premium even with bad credit, but the monthly premium can still be considered costly.
Nationwide still offers discounts depending on need. Here’s what the standard coverage offers:
- Bodily injury liability
- Property damage liability
- Personal injury protection
- Uninsured motorist and underinsured motorist
- Medical payments
Cost and Discount Details
- Average monthly cost: $227
- Discounts offered: Multi-policy, safe driver, low-mileage, good student, accident-free, anti-theft, telematics, defensive driving
Conclusion
Canceling your GEICO auto insurance policy can seem difficult, but the methods are painless so long as you know what to do. It’s important to remember the method you can cancel your policy, done via phone, and that the best time to do so is when you already have replacement insurance. Also, always remain conscious of state laws—it’s illegal to drive without insurance coverage, so you’d be facing penalties!
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.
