When you first purchased your insurance policy from State Farm, you were likely overjoyed and assumed you’d stay with the company forever. However, things change, and for any number of reasons, you might find that State Farm Insurance just isn’t meeting your needs anymore. But before you go ahead and simply cancel your car insurance policy, there are a few things for you to consider.
If you’re ready to find a new policy yesterday or you’re merely thinking about making a change, one of the first things you’ll want to do is head over to Insurify. You’ll be able to see what other auto insurance options are available and select one that makes sense for you.
Keep in mind that, like with many other things in life, the grass may initially look greener if you decide to do business with a different insurance company. However, you’ll need to take many things into consideration, including the level of coverage available, the type of discounts you’re eligible for, and the overall customer service of the company you’re thinking about partnering with.
Let’s take a close look at State Farm’s specific policy around cancellations and then walk through the process of canceling and obtaining new coverage step by step.
At a Glance: What is State Farm’s cancellation policy?
No matter what insurance company you use to cover your vehicle, you’ll typically run into the same type of cancellation policy. When speaking with State Farm about a cancellation, you’ll be pleased to know that, in most cases, you won’t be charged any sort of cancellation fee and may even receive a refund of any prepaid premium.
However, before you call your State Farm agent, it’s best to follow the steps below to ensure everything goes smoothly. There’s nothing more frustrating than having to make multiple calls to an insurance provider due to errors in canceling your policy.
Step 1: Look up your renewal date
Most policyholders find that it’s easiest to cancel their insurance coverage right before it’s set to renew, so head over to statefarm.com to view your policy details. If you don’t have access to your account online, you can also reach out to your local State Farm agent to determine your renewal date.
Keep in mind that in most cases, State Farm won’t charge you a fee to cancel, and you could even receive some of your premium refunded to you, but if you’d rather not worry about money going back and forth, you’ll want to cancel as close to your renewal date as you can.
You must know when your renewal date is so that you can purchase new coverage before your next policy renewal. Drivers should never have any gaps in their auto insurance. If you’re able to cancel your State Farm policy before it renews for a new term, it’s typically the most straightforward timing for everyone involved.
Step 2: Compare car insurance quotes
If you’re thinking about leaving State Farm, there’s a chance that one of your main reasons for making the switch is due to price. While you may not want to go another day paying for a policy that you don’t want, it’s crucial to do some research first. Remember, it’s illegal to drive your vehicle without insurance, so you’ll want to find a replacement policy before you cancel your current one.
Additionally, it’s not recommended that you have gaps in your coverage, so even if your new auto policy has to overlap with your State Farm coverage by a few days, that’s ok. In some states, you can be charged for not maintaining continuous coverage, so consider your timing carefully. There are a variety of insurance companies that offer discounts for continuous coverage, even if you’re a new customer, so consider this aspect before you cancel your State Farm policy.
Now that you’re ready to shop for a new policy, you might feel a little overwhelmed by trying to obtain multiple car insurance quotes. Visiting the websites of GEICO, Progressive, Allstate, and more will take some time, so consider using Insurify instead. You’ll be able to select the specific coverage options you’re looking for and compare rates in a matter of minutes.
Step 3: Think about why you’re leaving State Farm
We’ve already touched on price as the main factor when considering making an auto policy change, but that’s not always the only reason why people leave State Farm. The company uses captive agents, meaning that if you’re interested in enrolling in coverage, you’ll be directed to an insurance agent for help. Sometimes people don’t really care for their agent, and that can lead to the desire to work with another company.
Others find that the level of coverage they have through State Farm isn’t exactly what they’re after. Maybe you’re interested in more robust features, or you need to be mindful of the effect a newly received speeding ticket will have on your insurance premiums. Ultimately, everyone will have a different reason for why they’re leaving State Farm.
Why do we bring up this element in your cancellation process? It’s essential to have these things in mind when shopping for a new policy so that you can find the best option for your budget, lifestyle, and driving habits. The last thing you want to do is leave State Farm, enroll in new coverage, and have another policy that doesn’t quite meet your needs.
Step 4: Enroll in a new car insurance policy
That’s right—it’s suggested that you purchase your new coverage before your cancellation date with State Farm. Remember how we talked about maintaining continuous coverage? You mustn’t go a day without coverage, so you’ll want to get your new policy in place before you reach out to State Farm.
After you’ve done your research on Insurify, where you already compared car insurance companies in a matter of minutes, reach out to your new insurance company to complete the enrollment. You’ll need to provide them with several pieces of information, including details about your vehicle, your date of birth, your desired effective date, and your bank account if you’re signing up for auto-pay.
Step 5: Cancel your State Farm auto insurance
Believe it or not, actually canceling your auto policy with State Farm is step 5 on this list, as it’s so important to lay the groundwork for your new policy first. The company gives current customers several options when it comes to the cancellation process, so select the one that’s easiest for you:
- Contact your local agent directly to cancel your policy, or call 1 (800) STATEFARM. Those ending coverage due to the sale of a vehicle will likely need to provide proof of the transaction. Your insurance agent may want to notate your new insurance information as well, including the effective date and policy number.
- You may also cancel your insurance policy in person by visiting the office of your local State Farm agent. Again, you will need to provide them with your policy number, the date you’d like your policy canceled, and a bill of sale if you’ve sold your vehicle.
- State Farm also allows for cancellation by mail. Simply send your request at least two weeks before your desired cancellation date to:
State Farm Insurance
One State Farm Plaza
Bloomington, IL 61710
Step 6: Follow up on your refund
Unless you happened to cancel your State Farm policy on the very last day in the policy term, you’ll likely be eligible for a refund. Whether you pay your premium in full or on a month to month basis, you should receive back any portion of unused premium within several weeks after your cancellation.
Make sure to ask your State Farm agent if a check will be issued or if you can expect the refund to be deposited directly into your bank account. If you don’t see the refund after several weeks, follow up to inquire about it. Some insurance companies require a deposit when you begin your coverage, and if that’s the case with your new insurance provider, receiving your State Farm refund sooner rather than later will undoubtedly help to make the transition smooth.
State Farm Car Insurance Cancellation: Quick Question
Can you cancel your State Farm auto policy at any time?
Yes, policyholders can make changes or cancel their policy whenever they like. State Farm doesn’t specifically state that there is a cancellation fee, but it’s best to check with your local agent to see if there will be any penalties for doing so.
Will I get a refund if I pay State Farm monthly?
The size of your refund will depend on the effective date of your cancellation and your current payment schedule. Ask your State Farm agent if you will be receiving any portion of your unused premium after you cancel your car insurance policy.
Can I cancel my State Farm coverage and get a new policy that’s cheaper?
Every insurance policy will be a bit different whether it’s the price you pay for certain types of coverage or the discounts you’re eligible for. If you’re reading to cancel with State Farm, make sure you visit Insurify first. You’ll be able to compare quotes from multiple policies at once and find an option that’s perfect for your budget.
Browse, Compare, Discover with Insurify today.