Top2) Follow Their Lead

Insurance companies handle cancellations differently. Some might ask you to sign a company document, formally indicating the desire to stop coverage. Others, though, are content if you just write a letter stating your intent, or talk to an agent or customer service representative about it.

Carriers have established ways of dealing with this matter, so it's easiest just to comply with their procedure.

Top3) Ask for a Refund

Several weeks or months of coverage might remain on the policy, particularly if a death is involved. If so, be sure to request a refund of the unused premiums.

Top4) Alert Your DMV

Depending on where you live, you might have to inform your state's motor vehicle department about the cancellation and the reason for it. You might also have to turn in the vehicle's license plates and registration tags. Just call the agency to find what you're required to do.

Remember, you must comply with your state's financial responsibility requirements. If you're canceling an insurance policy because there's been a death, you've sold your vehicle, or your vehicle is no longer operable, you're generally in the clear; however, if it's just a matter of wanting to do business with another carrier, it's best to either line up a new policy before you cancel your old one, or keep your vehicle off the roads until you do.