How to Cancel Allstate Auto Insurance

Honest Policy

Honest Policy

Questions:

Key Takeaways:

  • Allstate may charge cancellation fees, depending on where you live and when you terminate your coverage.
  • Allstate accepts cancellation requests through your agent only.
  • You should only cancel Allstate if you have replacement coverage or you’ve sold your car. Plan on initiating your new coverage the day before your Allstate coverage ends.

There’s a guy named Mayhem who keeps popping up on your television to warn you about the dangers of driving without protection from Allstate Insurance. Mayhem’s antics are amusing, but of course, somewhat overblown. In truth, you could get very similar protections from another insurance carrier, possibly even at a lower rate. If you’re ready to move on from your Allstate auto policy, here’s how to cancel your insurance coverage without extra fees or gaps in coverage.

Allstate Insurance Auto Coverage Cancellation Policy

To cancel your Allstate auto insurance, you need to contact your agent via phone, email or in person[1]. You’ll find your agent’s phone number, email address, and business address within the Allstate app or by logging in to the Allstate website. Alternatively, you can call the main customer service line at (800) ALLSTATE to request your agent’s contact information.

Most of the time, it’s easiest to call your agent with your cancellation request. You’ll need to have this information on hand:

  • Your policy number
  • Your name and phone number
  • The date you’d like to cancel the auto coverage
  • Replacement insurance information or, if you’ve sold the car, bill of sale

Your agent may ask you to confirm your cancellation in writing. You can usually do that via email. If you’ve paid up your policy past the cancellation date, Allstate will issue a refund less any applicable cancellation fees.

Allstate Insurance cancellation fees

Depending on where you live, Allstate may charge a cancellation fee — but only if you cancel in the middle of a policy term[2]. The cancellation fee is usually in the form of a short rate; this is when the insurer adds a surcharge to your premium before prorating your refund. Review your policy documentation or ask your agent if you are subject to a short rate and/or a cancellation fee.

You can always avoid the short rate and cancellation fees by terminating the coverage on the day the policy expires. Say your policy is effective from March 1 to September 1, 2020. But you decide in August that you’ve had it with Allstate. If your policy has cancellation fees, plan on holding out for a few weeks. Get a new policy in place and then cancel your Allstate coverage as of September 1. Just like that, you’ve sidestepped those cancellation fees.

5 Steps to Cancel Your Allstate Insurance Auto Policy

It pays to be methodical about canceling your Allstate coverage. Here’s why. Unless you have sold your car and given up driving, you will need to replace your Allstate policy. And, as we mentioned above, it’s ideal to make the switch on the day your current Allstate policy expires to avoid cancellation fees. Plus, you need to initiate the replacement coverage just before you cancel with Allstate. The five cancellation steps below help you navigate those moving parts without a hiccup.

allstate's instructions on how to cancel
Retrieved from https://www.allstate.com/support/how-to-cancel-policy.aspx

1. Decide how much coverage you need

Drivers commonly switch auto insurance carriers to lock in a lower premium. That’s only a good deal if the lower premium gives you the coverages you need. If you’re under-insured and you cause an accident, you could find yourself under legal order to hand over your life savings to cover someone else’s medical bills. It’s vastly cheaper to pay higher premiums for appropriate coverage levels.

So, review those coverages and list out what you need. Choose liability limits that are sufficient to protect your assets and deductible levels you can afford. Also, if the car is financed, you may not have the option to reduce coverages anyway. Look through your loan documentation or call your lender to clarify your minimum coverage requirements.

2. Shop for replacement coverage  

With your list of desired coverage levels in hand, start shopping around with other carriers. Typically, you can get an auto insurance quote in about 15 minutes, as long as you have all the right information on hand. That information includes:

  • Your name, driver’s license number, and birthdate, plus the same information for other drivers who’ll be on the policy
  • Home address
  • The vehicle make, model, year, and VIN
  • Mileage on the car and estimate of how much you drive annually
  • Coverage levels
  • The effective date for coverage (this should be the day before your Allstate policy expires)

3. See if Allstate will lower your premiums  

Auto premiums can vary dramatically from carrier to carrier. Collect three to five quotes, though, and you’ll have a good idea of what a competitive rate is for the coverage you want. If Allstate isn’t the lowest, call up your agent and ask there’s any way to reduce your premium, without reducing your coverage. Your agent may be able to find a discount or two to help. For example, you can get a 3% discount off the bat by opting into Allstate’s Drivewise program. Drivewise tracks your driving via an app and rewards you for safe driving habits.

4. Initiate a new policy

If Allstate comes through with lower rates, your work is done. Otherwise, go back to your quotes from other carriers and pick your best option. Contact that insurer and request to start your coverage on the day before your Allstate policy expires. You’ll need to set up a billing method and provide any outstanding details to the insurer.

5. Cancel your Allstate auto policy

Now, you can put in a second phone call to your Allstate agent to request termination of your coverage. Again, canceling on the day your policy expires is the best approach.

You may need to email your cancellation request in writing also. Make sure you request a confirmation that your policy will be canceled on the date you requested. There have been some reports from Allstate customers that their agent didn’t receive the written cancellation and never canceled the policy. If that happens, you’ll continue to get invoices and Allstate will put you in “past due” status.

Remember, too, to cancel any automatic payments you have set up with your bank. Allstate can’t keep your overpayment if you already have replacement coverage, but it might take some coordination to track down your money and get it back.

The Fastest Way to Cancel Your Allstate Auto Policy

Here’s the fastest way to cancel your Allstate auto insurance:

  1. Log on to the Allstate website or the Allstate app.
  2. Find your agent’s telephone number.
  3. Call your agent and ask your policy to be canceled.
  4. Follow up with an email that requests termination of coverage.
  5. Get a confirmation that your policy will be canceled.

Before You Cancel Your Allstate Insurance Auto Policy

There are two big questions to ask before you cancel your Allstate insurance. First, is canceling the right approach? And second, am I moving to the right carrier?

When you should cancel

You should cancel your insurance when you’ve found a cheaper premium elsewhere or when you’ve sold the car. All other situations — maybe you’re moving out of state or driving less than you used to — warrant some additional thought. Allstate can write you a new policy in a different state, for example. And it does work in your favor to stick with the same carrier. That minimizes the chances you’ll have a lapse in coverage, which can cause future premiums to rise and also exposes you to potentially driving without insurance.

If you still own the car but aren’t driving it, though, reducing or pausing coverage are better choices than canceling outright.

Finding the right carrier

Before you commit to a new car insurance provider, check on the company’s customer service rating and financial strength. Two sources for customer service ratings are U.S. News and J.D. Power. And you can see FitchRatings or Moody’s to research insurers’ financial strength. Moody’s asks you to register to search credit ratings, but the service is free to use.

When to Start Your New Auto Policy

Start your new auto coverage the day before you cancel your Allstate policy. That’ll ensure that you aren’t without coverage at any point. A break in coverage, even a short one, can lead to an increase in your premium later — so it’s best to avoid that by allowing your old and new policies to overlap by one day.

Canceling Allstate Insurance FAQs

How do I cancel my Allstate auto policy?

You must contact your Allstate agent by phone, email, or in-person to cancel your policy. You can find your agent’s contact information by logging into your account on the Allstate website or in the Allstate app.

Does Allstate charge cancellation fees?

Allstate may charge a cancellation fee or a short rate, depending on when you cancel the policy and where you live. You can avoid any extra charges by terminating your Allstate coverage the day your policy expires.

When should I cancel my Allstate auto policy?

Only cancel your Allstate auto coverage when you have replacement coverage in place, or if you’ve sold the car. In most states, it’s illegal to drive without insurance. Allstate will likely ask you for proof of replacement coverage or a bill of sale showing you’ve sold the car when you request the cancellation.

Mayhem is Allstate’s fictional frontman, but it’s also a byproduct of switching insurance carriers without a plan. Shoot from the hip and you might end up with double coverage or, worse, no auto coverage at all. Protect yourself from that form of mayhem by following our five-step cancellation process — designed for a seamless transition with no lapse in coverage.

Sources

[1] How do I cancel my policy or account? (n.d.). Retrieved June 30, 2020, from https://www.allstate.com/support/how-to-cancel-policy.aspx

[2] R/Insurance – Does Allstate charge a cancellation fee? (n.d.). Retrieved June 30, 2020, from https://www.reddit.com/r/Insurance/comments/6mtapj/does_allstate_charge_a_cancellation_fee/

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