How to Cancel State Farm Insurance [3 Simple Options]

Car insurance is necessary, but with increasing premiums across the board, it’s normal to shop around to find a cheaper option. If you’re anything like me, you change car insurance often, sometimes even annually.

If so, you must know how to switch car insurance. If you are currently insured by State Farm, the first step is to learn how to cancel State Farm auto insurance.

The good news is that there are multiple options to cancel your State Farm coverage easily. Here's what you need to know about how to cancel and some considerations before moving forward.

State Farm's cancellation policy

State Farm allows you to cancel your policy immediately upon request or at a specified date. To cancel your coverage, you must provide certain information, including your name, date of birth, and insurance policy number.

Covered policyholders canceling because they have sold their vehicle may also be required to provide a bill of sale or proof that they forfeited their vehicle's license plate.

State Farm doesn’t charge a cancellation fee; you can cancel your coverage anytime. You can also receive a prorated refund if you have prepaid your insurance premiums.

How to cancel your State Farm Insurance policy

You have three options to cancel your State Farm policy:

Cancel your State Farm insurance by phone

To cancel by phone:

• Find the telephone number of your local State Farm agent. You can use State Farm's website to find a local agent’s contact details if you don't know who to contact. If you have an auto insurance policy, you can also call 800-STATEFARM, but you can't cancel other types of policies via this number.
• Provide the necessary details. You must provide your name, birthday, and policy number.
• Specify the date when you want to cancel. You cancel immediately or set a specific date in the future when you want your coverage to end.
• Provide necessary documentation. If you are canceling your coverage because you sold your car, you may need the bill of sale or some type of proof that you no longer own the car. If you are switching carriers, you may need to provide information about your new insurer.
• Notify the Department of Motor Vehicles (DMV) if required. Some states mandate that you alert the DMV of any changes in your car insurance policy. Your insurance agent should be able to tell you whether this is necessary.

Cancel your State Farm insurance by mail

You also have the option to submit your request to cancel your insurance policy via mail by doing the following:

• Decide when you want your policy to end. You must mail your letter at least two weeks prior to the date that you intend to cancel your coverage.
• Write a letter including the necessary information. Include your name, address, phone number, and insurance policy number in the letter requesting cancellation of your policy. You should also specify the cancellation date. If you are changing to a new insurer, provide that company's name, as well as the date your new policy will begin, along with the new policy number.
• Provide any required documents. These could include a bill of sale or proof you forfeited your license plates if you're canceling coverage because you sold your vehicle.
• Sign and date your letter. Be sure to include your signature on the request for cancellation.
• Mail your letter. Send your letter to: Corporate Headquarters; State Farm Insurance; One State Farm Plaza; Bloomington, IL 61710.

If you choose this method, you will need to plan ahead because you cannot cancel instantly when you mail your letter, unlike if you cancel via phone.

Cancel your State Farm insurance in person

Finally, you have the option to cancel your State Farm insurance coverage in person. To do this:

• Find your local State Farm agent. You can use State Farm's online tool to find agents in your area if you aren't sure whom to contact.
• Gather your information. Come prepared with your contact details, policy number, and the date that you want your coverage to end.
• Obtain any required documents. If you've sold your car and no longer need coverage, required documents could include a bill of sale or proof you've turned in your license plate.
• Visit your local office to complete the process. It may be a good idea to contact your agent first to set up a time to come in.

If you have bundled policies with State Farm

If you have a home and car insurance bundle and cancel one of your policies, this decision could make the others more expensive. When you "unbundle" insurance, you lose any discounts from having multiple policies with the same carrier.

If you are switching all your bundled policies to a new insurer, let State Farm know about all the types of coverage you're canceling. However, if you switch only one policy, take the total costs of all of your insurance coverage into account when choosing the best car insurance for you.

I suggest looking at the big picture. For example, if you can get a lower car insurance premium, but this causes your home or renter’s insurance to increase as much as the savings, the switch may not be worth it.

Key tips for switching insurance providers

If you are canceling State Farm, it's likely because you're shopping for a different insurance policy. To ensure your change in coverage goes smoothly, consider the following:

• Gather the required information. You must provide the names, birth dates, and Social Security numbers for all drivers you intend to insure on the new insurance policy. Providing your vehicle identification number (VIN) can also help you to get more accurate insurance quotes.
• Shop around with multiple insurance carriers to get new quotes. It’s a good idea to get quotes from several companies so you can see which offers the best price on the coverage you need.
• Make sure you understand the coverage you need. If you want to replicate your current coverage, you can provide new insurance companies with your current declarations page. If you don't have a copy of this, ask your provider for one.
• Compare apples to apples. Compare each quote offered and ensure it’s for the same level of coverage, such as bodily injury liability, property damage coverage, collision coverage, and comprehensive coverage. Also, check the policy limits to ensure they are the same, such as a $50,000 limit on bodily injury and a $10,000 limit on property damage.
• Provide your current insurer with plenty of notice. Let your existing insurer know you are canceling the policy and when so you don't end up paying for double coverage.
• Avoid a lapse in coverage. It's crucial to get new car insurance coverage in place before canceling your old policy. Going without insurance is illegal in most states, and it can also make your rates more expensive in the future.

FAQ

Bottom line

You can cancel a State Farm insurance policy via phone, in person, or by mail. Just pay attention to any bundling discounts before canceling, to ensure it makes sense. It’s also important to get your new insurance in place before canceling to avoid a lapse in coverage that could be costly.

To get the best deals, I suggest shopping around with the best car insurance companies to compare quotes and types of coverage before choosing.