Car Insurance - Cancel a Policy

If you no longer need car insurance, cancel the policy. This will help you save money, but be careful you only cancel a policy if you do not have the vehicle anymore or it was wrecked and rendered useless. If you are planning on purchasing a new car, don't cancel your car insurance, but drop the current vehicle in exchange for the new one. Many states will require the vehicle's tag to be returned to the state tag office if the insurance is canceled for any reason, since it is legally required to have car insurance in order to drive the vehicle.

When car insurance is cancelled, the insuring agency will notify the DMV. The DMV, or Department of Motor Vehicles, will charge you fines and fees if you are not properly covered. If you want to cancel your car insurance, call the company and ask them to discontinue coverage, and then turn in the tag. It may be a good idea to turn in the tag before you even cancel the insurance coverage, to avoid any potential confusion. If the car insurance is cancelled before the end of the policy term, you may be due a refund from the company.

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