No matter how hard you try, some relationships just don’t work out—including the one with your car insurance company. If you have a car policy from Geico that you no longer need or want, know that simply abandoning it isn’t an effective solution. You need to confront it and tell Geico directly that you want to cancel your car insurance.
Geico’s Cancellation Policy
Fortunately, Geico doesn’t have a complicated cancellation policy. In short, you’ll need to call 800-841-1587 and speak directly to a representative who will take your policy number and desired cancellation date and file a policy termination. You can cancel your coverage immediately or at any future date. You’ll be responsible for your auto premiums up until the cancellation date, but not after. If you prepay your premiums after the cancellation date, you’ll receive a partial refund.
Geico Cancellation Fee
Geico doesn’t charge a cancellation fee. However, if you cancel your coverage mid-term, you may be subject to a short rate. When you’re charged a short rate, the carrier increases your premium by a percentage for that period and then calculates your prorated premium from that increased amount.1 Only a few states, like New York, allow this practice.2
Here’s how a short rate works compared to standard prorated coverage. Let’s say you start your policy on June 1st and the premium is $100 for 30 days. On May 15th, you cancel your coverage. Prorated coverage means you pay $3.33 for each day of coverage, or $50 total for 15 days. But if a short rate is used, the carrier will add a percentage of the premium, say 10%, to the prorated coverage. That brings your total premium to $110, or $3.67 per day. Then you pay $55 for 15 days of coverage. This is not called a cancellation fee, but the short rate increases the cost.
Geico uses the short rate in some states and only when you cancel mid-term. You can avoid this additional fee by terminating your Geico coverage on the same day the policy term normally ends.
Canceling Your Geico Insurance, Gradually
Since you are legally required to have auto insurance in most U.S. states, you don’t want to abruptly cancel your Geico policy. Also, if you still have your car, Geico will ask you for proof of replacement coverage before canceling your policy. So, it’s a good idea to plan ahead and schedule a switch. This will make the process easier. Here’s how to proceed.
1. Know your Geico policy details
Open your Geico policy’s declaration page and look at your current coverage levels. Unless you’re moving out of the country or selling your car permanently, you’ll need to change your coverage. Be sure to get quotes for coverage levels similar to Geico’s to make sure you compare your options.
You should also pay attention to the effective dates and billing status of your coverage. To avoid the possibility of being charged a lower interest rate, you should cancel your Geico policy on the day your coverage expires. In that case, you won’t have to pay any additional premiums and won’t be entitled to a refund.
2. Search
With your Geico policy information in hand, start looking for the cheapest rates. New potential carriers will ask you the date you want your coverage to start — plan to start your new policy the day before you cancel your Geico coverage. A one-day overlap ensures you won’t be left without auto coverage by accident.
Going without coverage for even one day is a bad idea. For one thing, you shouldn’t drive without car insurance. Accidents happen no matter how careful you are. If you don’t have insurance, they can be financially and legally devastating. Plus, if you let your coverage lapse for even one day, your future premiums will increase. Insurers will view a period of no coverage as a red flag and charge you more.
Keep a notebook or folder with your comparison quotes. This way, you can quickly review the coverages — to make sure they’re all comparable — and the associated premiums. You can also keep other notes and additional information in the same folder. For example, you should look beyond the cost of premiums to the insurance company’s customer service and claims processing records.
3. Ask Geico to come forward
Before canceling your Geico auto policy entirely, see if you can adjust the coverage to suit your needs. The appropriate adjustment will depend on your reason for canceling. For example:
If you find cheaper premiums elsewhere, ask Geico to match quotes from competitors. There’s no harm in asking, especially if you’ve had good service with Geico.
4. Start New Insurance
If you are determined to switch carriers, start your new insurance before canceling your Geico policy. Be sure to provide your new insurance company with all the necessary documents or information, such as proof of vehicle ownership, any lender information, your driver’s license number, and payment method. Once your insurance starts, you should receive proof of temporary coverage from the carrier within one day.
If your vehicle is financed, notify your lender of the change. Your new insurance company will do this for you, but it’s important to double-check.
5. Cancel Your Geico Policy
Once you’ve confirmed that you have other insurance, you can cancel your Geico coverage.
The Fastest Way to Cancel Your Geico Auto Policy
Many insurance companies accept cancellations in a variety of ways, but Geico will only cancel your policy over the phone. The process, outlined on Geico’s website, is as follows:
- Call 800-841-1587.
- An interactive voice system will answer you and ask why you’re calling. You can say “Cancel policy,” then “Auto.”
- You’ll be directed to an agent who will need your Geico policy number to process the cancellation.
Before you cancel your policy: Drivers typically switch auto providers to save on premiums. But there are other things to consider. Here are three things that might surprise you if you don’t notice.
Cons of discounts for bundled coverage: If you bundle auto and home coverage with Geico, make sure you get comparable quotes from other insurance companies. Another insurance company may offer you a cheaper rate on auto coverage, but your homeowner’s insurance will be significantly higher without the bundle.
Cash flow impact: Switching auto insurance companies can cause cash flow problems. If you cancel your Geico coverage before the policy term ends, you may be eligible for a refund. But you’ll have to pay for a new policy before you can get a refund. This is another argument for waiting until your Geico policy expires to buy new coverage.
Customer service: According to a 2019 J.D. Power survey, Geico ranks “better than most companies” in terms of overall customer satisfaction, better than State Farm, Progressive, Farmers, and Mercury. Before switching, compare any potential insurer’s customer service ratings to Geico. Cheaper rates from other insurance companies are nice, but they can’t make up for poor customer service.
Scheduling New Insurance with a Geico Cancellation
You should never be without auto coverage, so it’s best to plan for a day of overlap between your new policy and your old Geico policy. Prepare for this in advance. Get competitive quotes and research your potential insurance companies. Allow enough time to compare your options and make an informed decision. Then, activate your new policy before canceling your Geico coverage.
Frequently Asked Questions About Canceling Geico Auto Insurance
Does Geico Charge a Cancellation Fee?
Geico does not charge a cancellation fee. Some states allow insurance companies like Geico to charge you a reduced rate if you cancel mid-term. The reduced rate is a percentage that is added to your premium and is then determined based on the number of days you have coverage.
How quickly can I cancel my Geico insurance?
Geico can cancel your coverage instantly over the phone.
What is the best way to cancel my Geico insurance?
Geico only accepts cancellation requests over the phone. To cancel your coverage, call an agent at 800-841-1587 with your policy number.
Normally, it’s difficult to cancel a policy, but that’s not the case with Geico. As long as you have replacement coverage, canceling your Geico auto policy is just a phone call away.
What should I do before canceling my Geico insurance?
Before canceling your Geico insurance, make sure you have replacement coverage. The only exceptions to this are if you want to get rid of your car permanently or if you are moving out of the country.