How to Cancel Your State Farm Car Insurance Policy in 3 Easy Steps

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Written by Mandy Sleight Edited by Lequita Westbrooks

Updated January 29, 2024

Although State Farm is one of the best car insurance companies, sometimes it makes sense to switch to another insurer. If you need to cancel your auto insurance policy with State Farm, you can’t do it online. But you can cancel in person with your State Farm agent, by phone, or by mail.

It takes a few steps to cancel your State Farm car insurance policy, which we outline below. We’ll also help you determine when to cancel, alternatives to consider, and what to think about before canceling.

3 Steps to Cancel Your State Farm Car Insurance Policy

You might want to cancel your State Farm policy for a few different reasons. Maybe you found a new insurer with a lower rate, moved to another state, or added a teen driver. Whatever the reason, the good news is that it takes just a few steps to cancel your State Farm auto insurance policy.

1. Review your car insurance policy

Before you request cancellation, reviewing your insurance coverage first is a good idea. Check for any inaccuracies, like coverage you no longer need or a discount you should have but is missing.

If everything looks accurate and you’re ready to cancel, be prepared with the following information to make the next step easier:

• Your policy number
• Your full name and date of birth
• The cancellation effective date

And if you’re canceling because your vehicle has sold, you may need a bill of sale or a DMV receipt for returning your license plates as proof.

2. Contact State Farm customer service

You can cancel your State Farm policy in several ways. You can go in person to your local State Farm agent to process the cancellation. Another option is to mail in a dated and signed cancellation request a minimum of two weeks before your requested cancellation date, with your name, address, State Farm policy number, and cancel date to:

Corporate Headquarters

State Farm Insurance

One State Farm Plaza

Bloomington, Illinois, 61710

You can also call 1-800-STATE-FARM with the above information to cancel.

Canceling your policy on its expiration date is the easiest way to ensure a smooth transition — but you won’t get a refund. If you cancel midterm, you may be entitled to a refund if you paid in full.

3. Get your cancellation confirmation

Make sure you get a cancellation confirmation no matter which method you choose. It may come as an email or printout from your insurance agent confirming your cancellation request, which policy it’s for, and the effective date.

Cancellations by phone or in person with your local agent can take effect immediately, or you can schedule the cancellation for a future date.

Remember to stop automatic payments if you have them set up.

When to Cancel Your Car Insurance Policy

Not sure if canceling your State Farm coverage is the right choice? Here are some common reasons it makes sense to cancel:

• You’re moving: State laws for insurance coverage vary, and moving provides a potential opportunity for change, especially if you’re moving to a more expensive state. Although you may be able to transfer your State Farm coverage to your new state, it’s worth comparing insurance quotes to see if you can get a better insurance rate.
• Your rates went up: If you’re paying higher insurance costs even though your driving record didn’t change, you might find cheaper auto insurance coverage with a different company.
• You sold your car: If you don’t plan to get another vehicle, it might make sense to cancel your old policy. But if you plan to drive someone else’s car, consider a non-owner car insurance policy
• You had a bad customer experience: If you’ve had a bad customer service or claims experience with State Farm, you may want to consider switching to a different insurer. You can narrow down auto insurance companies by checking positive reviews, including the most recent D. Power U.S. Auto Insurance and U.S. Auto Claims Satisfaction studies.

What to Consider Before Canceling Your State Farm Auto Insurance Policy

Consider the following before canceling your current coverage with State Farm:

• Even though State Farm doesn’t appear to charge a cancellation fee, check first to avoid surprises if you decide to cancel.
• Avoid a coverage gap by switching to your new car insurance policy with a different company before canceling, and make sure the new policy’s start date aligns with your cancellation date.
• Check to see if you’ll owe money when paying monthly or get a prorated refund if you paid the full six-month policy in advance.
• If you bundle your home and auto with State Farm and cancel your car insurance, you’ll lose the multi-policy discount on your homeowners policy.

Alternatives to Canceling Your State Farm Policy

Canceling your State Farm auto insurance policy might not be worth it. Here are some alternatives to a policy cancellation.

• Ask about discounts: If price is your main issue, ask your State Farm agent to review your policy to see if you can apply discounts or make other changes to lower your premium.
• Re-evaluate your coverage needs: In some cases, reducing coverage might make sense. For example, if you own an older car, you might not need comprehensive or collision coverage.
• Consider a more affordable car: If you’re in the market for a new car and on a budget, get a quote for different makes and models first to factor insurance costs into your vehicle budget.
• Suspend your coverage: If you’re going on a military deployment or long-term trip and won’t be driving, discuss temporarily suspending your insurance coverage with your State Farm agent.

Canceling State Farm Policy FAQs

State Farm makes canceling your auto policy easy as long as you know which steps to take. Below, you’ll find the answers to some common questions about auto policy cancellations.

Can you cancel my State Farm auto insurance anytime?

Yes. You can cancel your State Farm auto insurance anytime, but the easiest way to cancel is on your policy renewal date. If you plan to switch insurance companies, this way allows you to keep the same dates on your new policy and prevent any coverage gaps.

Does State Farm charge a cancellation fee?

It’s unclear. State Farm’s website doesn’t say whether you’ll be charged a cancellation fee. To know whether you might owe money or be eligible for a prorated refund, check your insurance policy or contact State Farm.

Will State Farm cancel your policy if you just stop paying?

Yes. State Farm will cancel your policy if you stop paying — but before doing so, the company will apply any unused insurance premiums to keep your policy active. Once that money runs out, the company will cancel your policy.

Keep in mind that any coverage gaps between your current policy and your new insurance policy could cause you to pay higher rates.

Can you cancel your State Farm auto policy online?

No, State Farm doesn’t offer the option to cancel your auto policy online. You can cancel in person at your local State Farm agent’s office, by mail, or over the phone.

Does canceling car insurance affect your credit?

No. Canceling car insurance doesn’t affect your credit, but it could if you stop paying your bill.

Like medical bills and utilities that aren’t typically reported to the credit bureaus, your insurer can send your unpaid bill to collections. If this happens, your credit score could decrease because of the reported delinquency.

Sources

1. J.D. Power, “2023 U.S. Auto Claims Satisfaction Study,” Accessed January 19, 2024.
2. J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed January 19, 2024.

Mandy Sleight Auto Insurance Writer

Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She is a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications. She uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content to help readers make smarter insurance choices that have a positive effect on their budgets and finances.