When switching auto insurance, should I cancel the old policy or just let it lapse?
May 13, 2012 11:01 AM   Subscribe

Switching auto insurance: cancel old policy or let it lapse?

So, after some research, switching from Geico to Progressive. Saving at least $50 every six months (fully 1/6 of the premium). I've set up payments with Progressive, and the new policy begins the same day the old policy ends. Do I need to call up Geico and set a cancel date on the policy, or can I just let it lapse and not worry about it?

I live in Wisconsin, so I'm legally compelled to have insurance. I've got a good, solid credit history that I've worked hard to improve in the last decade…what's the best move for me to make?
posted by StrangeTikiGod to Work & Money (9 answers total)
 
Most insurance carriers renew your policy automatically unless you tell them not to. There's also no reason you cannot start the new one sooner and cancel the old one the next day either.
posted by Brian Puccio at 11:06 AM on May 13, 2012


Best answer: My State Farm insurance automatically renews at the end of the term unless I specifically tell them I want to cancel.
posted by birdherder at 11:08 AM on May 13, 2012


If you're saving $50 a month, why would you not just start the new policy immediately and cancel the old one immediately as well? What are you gaining by waiting for the end of your old policy?
posted by kindall at 11:18 AM on May 13, 2012 [2 favorites]


Best answer: We're in a similar situation: our interactions with Geico suggest that they won't cancel the policy unless you contact them with a formal request. (If you're using the website, there's an option on the "contact us" form.)
posted by holgate at 11:19 AM on May 13, 2012


Response by poster: Groovy, thanks, guys. I called Geico, they shaved about $12 off the 6-month premium, but I'm still saving a good chunk with Progressive. I'm letting the policy expire rather than canceling immediately just because I paid up from for the 6 month term, and suspect that I'd likely not get a pro-rated reimbursement check from Geico for the two months that would go unused if I switched immediately.

As a follow up question, anyone know if there's a need to notify the auto loan holder of the change in insurers?
posted by StrangeTikiGod at 11:25 AM on May 13, 2012


I paid up from for the 6 month term, and suspect that I'd likely not get a pro-rated reimbursement check from Geico for the two months that would go unused if I switched immediately.

In my experience, you absolutely would get a pro-rated reimbursement check when you switch in the middle of a term.
posted by muddgirl at 11:55 AM on May 13, 2012 [1 favorite]


I paid up from for the 6 month term, and suspect that I'd likely not get a pro-rated reimbursement check from Geico for the two months that would go unused if I switched immediately.

In my experience, you absolutely would get a pro-rated reimbursement check when you switch in the middle of a term.


Yeah. Seconding this. If you're switching to save money, it makes absolutely no sense to leave this money on the table.
posted by Betelgeuse at 11:58 AM on May 13, 2012


I actually just did this, from Geico to Progressive. I bought my Progressive policy first and then called Geico to cancel. They sent me a check for the balance from that day to the end of my term.
posted by Ghostride The Whip at 12:47 PM on May 13, 2012


I'm in Wisconsin. I just did this the opposite way, going from Progressive to Geico (which was $50 cheaper for me, I'm wondering why our situations are so different?). Anyway -- my new insurance company (Geico) emailed me a form letter to send to Progressive saying that they were my new insurer as of [Date] and they should cancel my policy and send me a reimbursement check to [Address]. It was easy as pie.
posted by desjardins at 1:16 PM on May 14, 2012


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