When you decide to cancel your auto insurance, you probably have seen that the cost outweighs the benefits — you’ve found a better deal, or no longer need the coverage. If you choose to cancel your Geico insurance policy, you need to know how to cancel the policy correctly. Keep in mind that a slight gap in insurance coverage could result in costly premiums.
What Is Geico Insurance?
Geico is one of the largest insurance providers in the U.S. The firm offers a diverse range of auto, homeownership, renters, and other custom insurance policies that provide a hedge against financial uncertainty.
Geico auto insurance is particularly a mainstay of the firm because of its high reimbursement rate and on-point services.
Why Cancel Geico Insurance?
Most auto owners will cancel an insurance policy if they find a cheaper premium that offers the same or better benefits than the preceding insurance. In the cutthroat insurance market, it is common to cancel insurance policies.
Moving to a different state, totaling your vehicle, changing your marital status, finding better rates, selling a car, and moving to a lower risk area are all valid reasons to cancel your Geico insurance.
Some states mandate you to have car insurance. Before canceling your current insurance, ensure you have obtained a replacement insurance—lineup your cancellation date with the date your new policy springs into effect.
Geico Cancellation Policy
Geico’s website promises that customers will receive a prorated refund for cancellation before the middle of the billing period. So If you paid $186 on May 1 and canceled on the 15th, Geico would owe you half the premium amount. The ideal time to cancel your insurance policy is before it renews. Check with your Geico insurance agent to find out when the policy continues or look at your policy document.
As of now, Geico has no cancellation policy; therefore, you may cancel at any time. The only limitation to withdrawing your Geico insurance is if the state requires you to surrender your plate. Geico will require proof of surrender before allowing you to cancel.
Also, if you financed or leased a car through Geico, they probably will not allow you to cancel your policy before paying the full loan deficit. Geico has no cancellation fee, therefore cancelling is straightforward with no significant costs.
How to Cancel Your Geico Insurance?
You can cancel the policy via mail or through a phone call, but you can’t cancel the insurance online or on the app. Also no one can cancel the policy for you unless you have designated to them the power of attorney. If you use a POA ensure you file one with the auto insurer.
Ready to cancel your Geico plan? Here’s how:
1. Get Information
Gather important information before calling in. For example, the Geico agent may ask for your insurance policy number or verify it after asking for some personal information. It is, therefore, essential to have the renewal date, premiums, and other related information when canceling.
2. Call the Customer Service Department
Call (800) -841-1587 and wait for the interactive voice response. Say “cancel insurance policy” when prompted, then “auto.” Once you are connected to the agent, maintain your cancellation stance. Agents are trained to prevent customers from canceling, whenever possible.
You can provide other competitor information to ask for a better deal or proceed with cancellation. If Geico requires you to provide additional information, they will offer a fax number for you to send the details.
Once the agent cancels your policy, request a written confirmation, which you can use to claim your refunds. Most Geico insurance buyers complain of late repayments.
3. Request A Refund
Ask the agent if you qualify for a policy refund and the refundable amount. You will receive your refund if eligible. Ask the agent to email you a refund acceptance letter or note. You will need the letter or lack thereof to prove you received lesser amount or none at all.
What Happens After Canceling Geico Insurance?
In specific situations, you will receive your refund if eligible after canceling the policy. Geico’s pro-rated refund fluctuates over time and is unique to every insurance type. Most clients buy the six-month or 12-month insurance plan, which is the basis for eligibility, depending on how far in you are on the coverage.
If you are on a month-to-month policy you may not be eligible for a refund. The only way to check your eligibility is contacting the agent with your insurance policy on hand. If you are on a month-to-month plan, you may cancel before renewal and avoid the refund hassle.
If you delay cancelation after the insurance has expired, you will owe Geico, which is not a good thing in anyone’s financial books.
If you qualify for a refund, you will receive it over different periods depending on the mode of payment.
Debit or credit card refunds take about seven days to appear in your account after you request the refund. Electronic fund transfers take 12 to 15 days. Checks take the longest — about 15 days. The check arrives by mail about a week after the 15 days are up.
If you haven’t received your refund after a month, contact Geico. Their support team is always available 24/7.
Some states mandate having auto insurance; driving around without insurance attracts steep fines. For example, in Utah you will need a SR-22 for three years, which increases your premiums for the period.
Find Your Next Auto Insurance
Unless you have sold your car or will no longer be driving, you will need auto insurance. Shop around for the best rates and coverage that meets your needs.
Have another insurance policy immediately before you cancel your Geico insurance to avoid incurring costs. Remember, lapses in coverage can get you in trouble with the law, if you continue to drive.
Consider suspending your insurance policy instead of canceling it, especially if you are traveling only for a few months for a few engagements. This will help you reflect on whether your auto insurance serves your needs.
Canceling your Geico plan is challenging if you don’t have the right information. Lapses in canceling your insurance policy and getting a new one means you will pay more — which is what you are avoiding.
By following our steps, you can successfully cancel your Geico insurance. Ensure you lineup your replacement auto insurance policy with the cancellation date of your existing Geico policy.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.