Can I Cancel My Auto Insurance At Any Time? 
Yes , you can cancel your auto insurance policy at any time . If you bought the insurance through an agent , you can simply call them and tell them you need to cancel your policy . If you bought the insurance directly from the insurance company , you contact them . There are two considerations . The first has to do with the amount of premium refund you will get if you cancel the policy prior to the expiration date . In most states , if the insured cancels a policy before the expiration date , the return premium is calculated on what is known as a `` short rate '' basis . The short rate calculation may include an extra 10 % to the insurance company to cover the expense of cancelling the policy . The second consideration is whether the auto has a lien against it . If you still owe money on your car , your lender will require that you replace the cancelled insurance right away with a new policy . And you ca n't hide this from the lender because the insurer you cancel with automatically notifies the lender that the insurance has been cancelled . 