Most auto insurance policies say that you, the insured, can cancel your policy at any time during the policy period by sending a written notice stating the effective date of cancellation. The answer is no. There are two important things you must know if you don't inform your insurance company of your decision to terminate, even if it's at the end of your policy period. First, the insurance company will send you a bill for your next premium payment. If your insurance policy is canceled, it may haunt your insurance future.
Cancellation is a red flag for insurance companies looking at prospective customers.
If an insurer sees on your claims history that you've recently been canceled, even if your credit rating is good, that may be the basis for denying your coverage or charging you a steep rate as a risky applicant. What to do In order to avoid the mess that comes with being canceled, here's what you should do. Call your agent or the insurance company and inform them that you wish to cancel your coverage. Be sure to let them know the date, because if you're not specific, you may end up unwittingly driving around without insurance. Your insurer will then send you a cancellation-request form.