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Individuals who wish to cancel an insurance policy will need to do so in writing. The letter will then be mailed to the insurance company via the postal service. This is the best method to contact car insurance companies and effectively communicate intentions. A letter also prevents policy holders from having to talk directly to the representative of a company.
Writing a car insurance cancellation letter can easily be done by following a set of steps.
| Car Insurance |
Review Policy Information
Canceling a car insurance policy can be done at any time. Car insurance policies do not have any type of restriction that limits rights to cancel a policy. Review the information included with the policy to ensure the proper cancellation procedure is used. The next step is to prepare a rough draft of the car insurance cancellation letter.
Prepare Rough Draft
A rough draft can be typed in a word processor or a regular piece of paper. The first thing to state on the rough draft is the date. This needs to be placed in the upper left corner of the document. Write or type the name on the policy and their address below the date. Below the
address is the name of the insurer. Include the contact person if addressing an agent or company representative. A subject line will go on the next line with the account number.
Opening Paragraph
Begin the opening paragraph by requesting the cancellation of the car insurance policy. Make sure to add a sentence stating that all charges or debits for payment be stopped. The next sentence should state the date when the policy is to be effectively canceled. Make sure to send any payments that are due if the letter is not ready to send before the monthly premium due date. The car insurance company will refund any premium that was overpaid. If the policy has a cash value, then request that the amount be paid by check when sending any premium refunds.
The Salutation
Include a salutation at the end of the letter. This will ensure that there is no question about the intent to cancel the policy. Include the word “Sincerely” or use “Best Regards” for the salutation. This is the final part of a car insurance cancellation letter. Make sure to sign the
letter under the salutation.
Final Steps
The next step is to create a final letter from the rough draft. This can be done by sending the letter over to a printer or by typing a new letter from the paper. Make two copies of the cancellation letter. Make sure to sign one copy and send it to the insurance company. The second letter is for personal records.
Sample 1 - Car Insurance Cancellation Letter
April 7, 2013
Name on Policy
Address of Policyholder
City, State, Zip
Car Insurance Company
Address of Company
City, State, Zip
Attn: Cancellations
RE: Car Insurance Policy Number
Please consider this letter as a formal request to cancel the referenced car insurance policy. Please stop all debits or charges for premium payments. The effective date of policy cancellation is 04/25/2013.
I am also requesting written confirmation of the cancellation and the return of any premiums. The cash value of the policy should also be sent with any returned premium. This action needs to occur within a period of 30 days from the receipt of this letter.
Sincerely,
Name of Policyholder
Address
Sample 2 - Car Insurance Cancellation Letter
April 1, 2013
Name on Policy
Address of Policyholder
City, State, Zip
Car Insurance Company
Address of Company City, State, Zip
Attn: Cancellations
RE: Car Insurance Policy Number
Please take this letter as a formal request to cancel my car insurance policy and stop all charges for premium payments. Please make this cancellation effective as of 04/20/13. I also request written confirmation of this cancellation, along with a refund for unused premiums, within 30 days from the receipt of this letter.
Sincerely,
Name of Policyholder
Sample 3 - Car Insurance Cancellation Letter
October 23, 2013
Car Insurance Company
Address of Company
City, State, Zip
Re: Policy Number
To Whom It May Concern:
This letter is to inform you I wish to have my car insurance policy referenced above cancelled effective [cancellation date]. Please send a written confirmation letter to me within 30 days after the cancellation takes effect. Please refund any and all unused portion of my premium.I look forward to hearing from you.
Sincerely,
Policy holder’s name
Address
