Can I cancel my insurance at anytime?

Move Insurance Carriers

One of the most frequently asked insurance questions we get as an independent insurance agent is, can I cancel my insurance midterm before my renewal? Now this could be for several different reasons like:

Found better Insurance

Don’t want to wait until your renewal date to move your insurance to another insurance carrier or agent

If those are the reasons and depending on what type of insurance is, the quick answer is yes you can.

Personal Insurance

If you are trying to cancel your personal insurance policies before your renewal date then you are in luck.

Insurance companies will cancel those insurance policies on a prorated basis, allowing you to get a refund back and not lose any money.

Personal Insurance Policies consist of the following:

  • Auto Insurance
  • Home Insurance
  • Umbrella Insurance
  • Boat or Watercraft Insurance
  • Motorcycle Insurance
  • Other recreational vehicles &/or toys
  • 1-4 family rental properties

There are a few situations where your insurance won’t refund you the complete prorated amount. Some insurance companies will charge a cancellation fee, but this usually only happens when you have been with that insurance company for less than 6 months and only a handful of insurance carriers will do this.

One important thing to note, if your insurance policy cancels for nonpayment then a prorated calculation won’t get calculated until after the cancellation date. This will leave you with an unearned premium that is due to the insurance company. I want you to make sure that if you plan to move your insurance to another insurance company that you get it canceled the same day as the new policy is issued and don’t let it “run out”.

Auto Insurance

In the state of New York, you are required to keep auto insurance on your vehicle as long as you have license plates registered for that vehicle. You can not remove insurance until those plates are turned into the NYS DMV.

Failure to do this will result in a fine from the Department of Motor Vehicles. The fine starts at $8 a day for each vehicle for the first 30 days. The dollar amount rises as the length of time with no coverage does.


YouTube video

Commercial Insurance

Now where it is easy to cancel your insurance midterm on your personal insurance policy, it isn’t as easy on a commercial policy.

Most business insurance policies are canceled with a short rate penalty. This penalty could be up to 10% of the unearned premium.

Business owners are better off moving their insurance policies on the renewal date. There are some exceptions to this rule but it will be on a case by case basis.

Another thing to note is if you are with the New York State Insurance Fund or NYSIF, they currently require a 30-day notice before the renewal date where they need to be informed that you are moving your insurance. This needs to be done even if you are just shopping rates. NYSIF needs to be put on notice that you “MAY” move your policies.

What’s Next?

Having the right insurance is important. Canceling your insurance policies without the advice of a professional could put you in a bad situation. Discuss with your agent first.

If you don’t have a relationship with an agent or want a review of your insurance?

Click below to learn more about how to proceed.



Getting the process couldn't be easier! Enter some basic info below to start the process right now:


Visit Our Office

202 N. Center St.
East Syracuse, NY 13057
Call Email Claims Payments