How to cancel USAA auto or renters insurance (and what is their cancellation policy)?

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Are you looking to change insurers? Are you late on your payments? Can’t pay your United Services Automobile Association (USAA) auto or renter insurance premiums anymore?

You’re probably wondering how to cancel your insurance with USAA because you’re worried about penalties. These can also put a significant dent in your finances, especially if you’re on a tight budget.  

We conducted deep research on various ways to cancel your USAA insurance based on official and non-official sources, including USAA’s cancelation policies.

Read on until the end so you’ll know how to cancel your USAA auto insurance or renter insurance quickly and stop paying premiums. Learn the right time to cancel your policy so you don’t break any state laws. We’ll also tell you if you have to pay penalties if you decide to cancel early.

What Are The Steps To Cancel Your USAA Insurance Policy?

You cancel your policy by phone, online, or mail. 

We recommend canceling by phone because it’s faster and easier than other methods. The cancellation date can be set at a future date or you can request it to take effect immediately. 

Whichever method you choose, you need to prepare the following information:

  • Name
  • Address
  • Date of birth
  •  Policy information
  • Your preferred cancellation date
  • Reason for cancellation
  • Name of the new insurance company and policy number, if you’re changing insurers

Cancel By Phone

  • Call USAA’s customer service at 1-800- 531-8722
  • Speak to a customer service agent
  • Provide the relevant information to verify your account
  • Request to cancel your insurance policy
  • Ask for a refund if possible

Cancel Online

  • Log in to your USAA account online
  • Go to the contact page
  • Message a customer service agent
  • Request to cancel your insurance policy

Cancel By Mail

  • Write a letter to USAA requesting the cancellation of your insurance policy
  • Don’t forget to include all the details listed above in your letter
  • Send it to:

USAA

9800 Fredericksburg Rd

San Antonio, TX, 78288

What Is USAA’s Cancelation Policy?

USAA allows you to cancel your policy any time, even if it’s prior to your scheduled renewal date. You may even be eligible for a prorated refund if you’ve paid your premiums in advance. 

1. Are There Any Penalties?

You won’t be charged or penalized for terminating your USAA insurance policy early or before the renewal date. But you can expect they’ll do everything to keep you as their client.

You will only pay a cancellation fee if you allow your policy to lapse without informing USAA.

2. Can You Get A Refund?

Your refund eligibility will depend on how far along you’ve paid in advance for your insurance. If you’ve paid 6 or 12 months in advance, then you’ll have no problem requesting a refund.

However, if you’re paying month-to-month, then you will most likely not be eligible for a refund. Contact USAA customer service and ask about your refund eligibility.

3. How Long Does It Take For USAA Insurance Policy To Be Canceled?

It will take at least 30 days for your insurance policy to be canceled if you made the request by mail. You will receive a certified confirmation through the mail that your policy has been canceled. 

If you made your cancellation request online, you can also check your policy status online to see if the changes have been applied.

Canceling by phone is the fastest, easiest, most convenient, and recommended way. The cancellation date can be set at a future date or you can request it to take effect immediately. 

4. Do You Need To Be Current On Missed Payment?

If you have missed payments, you need to pay them and any late fees before you can cancel.

Once you’re current and you decide to cancel your coverage, you don’t have to pay for anything regardless of how much time is left in your policy. 

If you find a charge after the cancellation, ask a USAA customer service agent by phone or online about it to make the necessary corrections.

5. Do You Need To Buy A New Policy Before Canceling Your Current Insurance Coverage?

A lapse in insurance coverage can cause a lot of headaches. If you get involved in a car accident and you’re not covered, you may be liable for paying the medical bills and damages out of pocket.

If authorities catch you driving without insurance, you may incur fines of up to $5,000 and penalties, such as suspension of your driver’s license.

Your car insurance company may also consider you as a higher-risk driver if you have a lapse in coverage. As a result, they will charge you with higher insurance premiums.

Data from Quadrant Information Services showed that policyholders with a lapse in car insurance coverage have an annual premium of $1,861 for full coverage, which marked a nearly $200 increase than the national average of $1,674.

Car owners with gaps in insurance generally pay 11% more than those who have made consistent payments.

Meanwhile, renters insurance isn’t always required. If your landlord requires it, be sure to purchase your new renters insurance policy before canceling with USAA so you can avoid a lapse in your coverage. If that happens, you’ll be responsible for any claims or losses against you and your rented home. 

What Should You Consider Before Canceling Your USAA Policy?

Before you cancel your USAA car insurance or renter insurance, don’t forget to check your state laws surrounding the cancellation of auto insurance.

Find out if your state requires you to report if you’ve changed insurance providers. You should also determine if there are state laws that set a specific requirement for auto insurance in your area.

Make sure to start your new insurance coverage before your existing policy ends. Consider planning your new coverage to kick off on the last day of your existing insurance. This way, you don’t have to pay double and you don’t have to worry about a lapse in coverage.

Just like auto insurance, you should have a new renters insurance policy in place before you cancel the old one if you can’t afford your existing one or you’re moving to a new place.  

What Should You Consider Before Choosing A New Insurance Provider?

Before you start evaluating potential insurers, you should understand first why you’re leaving USAA.

Is it because of their monthly premiums? Is it too high for your budget? Did you experience bad customer service? Did you have problems making a claim?

Answering these questions will help you choose an insurance provider that can meet your expectations in terms of cost, claims, and customer service.

When Finding New Auto Insurance

If you’re looking for a lower insurance premium, you should ask USAA first if you’re eligible for discounts. USAA will do its best to keep you as a client and that means it may give you offers to convince you to stay. You can take advantage of this to get lower rates.

But if you’ve decided to switch to a different insurer, don’t forget to compare can insurance quotes. Some of the car insurance companies you can look into include Mercury and Geico.

Here’s how they compare with USAA:

Auto Insurance ProviderAnnual Insurance Premiums For People With Bad CreditAnnual Insurance Premiums For High-Risk Drivers
USAA$2,682$1,472
Mercury insurance$1,367$1,882
Geico$2,051$2,238

When Finding New Renters Insurance

If you’re looking for a new renters insurance provider, you should consider State Farm and Allstate.

Renters Insurance ProviderMonthly Insurance Premium
USAA$10
State Farm$15
Allstate$16

State Farm offers renters insurance in all states in the US. Aside from its wide availability, the company also has excellent ratings with J.D. Power and AM Best. It offers discounts if you combine your auto insurance and renters insurance. You can get renters insurance for $15 per month for about $35,500 in coverage limits.

Allstate renters policy has an average monthly premium of $16. Its renters insurance policies provide personal property coverage, loss of use coverage, liability coverage, and medical payments coverage. 

Final Thoughts

You can cancel your USAA insurance coverage through phone, online, or mail. The longest method is submitting a cancellation request via mail. Meanwhile, the easiest methods are canceling online or by phone, which can take effect immediately.

You also don’t need to worry about paying a cancellation fee. USAA allows you to cancel your policy earlier without getting penalized.

However, you should avoid a lapse in coverage if you’re planning to switch insurance providers. Schedule the end of your coverage at the exact day your new coverage begins. This way, you’ll avoid fines, penalties, and higher insurance premiums.

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