How to Cancel Esurance Auto Insurance

How do I cancel Esurance car insurance?

To cancel your Esurance auto insurance policy, call the Esurance customer service number at 1-800-379-7262. You’ll reach an automated system that can get you to an Esurance customer service representative for cancellation.

Here are five steps you can follow to cancel:

  • Step #1: Verify your renewal date – Review your renewal offer, which comes 45 to 65 days before your car policy expires
  • Step #2: Contact Esurance – Call Esurance customer service and let them know you want to cancel
  • Step #3: Give the representative your information – Be sure to give the representative your name, address, policy number, and other personal information to move the cancellation along smoothly
  • Step #4: Set a cancellation date – Setting a date gives you time to shop around or change your mind about canceling
  • Step #5: Wait for the cancellation date – You’re all set

Esurance representatives may try to change your mind by providing discounts that you may have missed. If price isn’t the reason you’re cancelling, this might not matter to you.

We recommend setting a cancellation date that’s the same or after your new policy starts. Immediately canceling could lead to a coverage gap in auto insurance, which can drive up your rates.

Can you cancel Esurance car insurance policy by mail?

Esurance’s website says that customers should cancel by phone. But if an agent instructs you to send a certified letter, you can send it to Esurance customer service.

Here’s the address:

Esurance Customer Service P.O. Box 5250 Sioux Falls, SD 57117-5258

Esurance also has a corporate office in San Francisco. It’s located at 650 Davis Street, San Francisco, CA 94111.

Can you cancel Esurance car insurance online?

No, you can’t. Many customers ask how to cancel Esurance car insurance online, but Esurance doesn’t have any specific instructions on how to cancel online.

It’s best to cancel Esurance by phone or mail.

Can you cancel Esurance car insurance on the mobile app?

The answer is no. If you want to know how to cancel an Esurance policy on the mobile app, unfortunately that’s not possible. Esurance insists customers cancel by phone.

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Esurance Pros and Cons

Esurance delivers on its promise of fast and easy with an online quote, managing your policy online, and using their app. If your auto accident claim is eligible for fast processing (which isn’t an option in every state), you could see the money as soon as the next business day. Customers who want a fully online insurance experience and lower rates will likely be satisfied with Esurance. 

Esurance’s “well-working website and great online presence” make transactions quicker than its competitors, says Patrick Peterson, writer/editor at AutoDetective, an online car comparison and auto content site. 

However, the downsides are steep. Most insurance providers do not charge cancellation fees when terminating during the coverage period. Esurance is “notorious” for charging cancellation fees to its customers, says Peterson. 

The brand doesn’t offer a lot of discounts. And its customers tend to be dissatisfied, as NAIC’s complaint index score reveals. When claims handling does go wrong, there’s no way you can talk to a person since there are no physical agents. 

Another important takeaway is that the Esurance brand is eventually phasing out entirely. This means you could be left shopping for a new insurer or switched to Allstate mid-policy.   

Pros

  • Easy to manage policies online or via the app

  • Fast claims processing for most customers

  • Backing from parent company Allstate

Cons Close to four times the expected number of customer complaints about home insurance Higher than average complaints about auto insurance Charges cancellation fees No physical agents Few discounts Does not offer life insurance The Esurance brand is being phased out

Step 6: Follow Up on Your Refund

If you cancel your Esurance policy before the renewal, you’ll likely get a refund of your unused premium. Expect to see a check in the mail or a credit to your bank account or credit card within two weeks. If not, contact Esurance and follow up about your refund.

Step 1: Look Up the Renewal Date

Your auto insurance renewal date is on your policy’s declaration page. It’s a cover page with an overview of your coverage limits, name, address, and coverage dates.

Many insurers like Esurance state you must cancel your policy within 10 days of the renewal date of your current term to avoid receiving a bill for the next policy.[1]

See More: Cheap Car Insurance

When should you cancel your auto insurance after selling a car?

You should cancel your auto insurance after you've signed the title over and surrendered your plates to the DMV. However, if you're planning on buying another vehicle soon, it might make more sense to switch your coverage to non-owner auto insurance until you've purchased your new vehicle.

Prepare to Cancel

If you have considered all your options and still want to cancel your Esurance policy, start by getting your ducks in a row. First, check your policy to see when you can cancel. Then secure another policy so that there is no lapse in coverage. You may also want to look up the state where your car is registered and insured and check the policy regarding penalties or fees for cancellation. Make note of any charges that apply to you so that you can ensure accurate billing when the process is complete.

Auto insurance cancellation

Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:

  • You fail to pay the premium
  • You have committed fraud or made serious misrepresentations on your application
  • Your drivers license has been revoked or suspended.

Confirm Your Refund Eligibility

Refund eligibility can typically be determined by how far in advance you paid for your insurance.  If you prepaid for a 6 month or 12 month policy, you will likely have no issue when requesting a refund.  If, however, you are on a month-to-month plan, you may not be eligible for a refund.

The only way to know for sure is to contact your insurance representative and ask for assistance. They are there to help!

Can I Cancel My Car Insurance at Any Time?

The best time to cancel your car insurance is after you have another policy set in place. While you can cancel your coverage any time, there are some cases where you may have to pay a penalty. For instance, this is common if you cancel within 14 days after getting your new policy.

Cancellation fees can vary from a set dollar amount up to a percentage of your overall premium cost. The good news is that fees are usually not charged for a standard cancellation, but policies vary.

Talk to your insurer about cancellation, and find out whether you'll be charged any penalties or still owe money on the policy.

If you cancel your insurance within the grace period, it is likely you will still owe money on the policy. A grace period provides coverage for a certain number of days past your payment due date. It also allows you extra time to get your premium paid, but that doesn’t mean you can get a free few weeks of coverage just by switching insurers. The only way to get out of paying for those days is to provide proof of coverage through another carrier for that time.

Warning Just because you can cancel your car insurance at any time, that does not mean you should. Going without car insurance can put you into a high-risk pool in many states when it comes time to purchase car insurance again.

What Happens When You Cancel Your Policy?

When you cancel an auto insurance policy, your insurer will likely notify your state that you and your vehicle are no longer insured. Because it’s illegal to drive without insurance in virtually every state, your state’s department of motor vehicles may ask you for proof that you either sold the vehicle or have obtained other insurance. If you don’t respond, then the state can suspend your registration and driver’s license. In some states, you also may be required to return your license plates.

If you still have time left on the policy, your insurer may issue a prorated refund of the premium that you paid most recently. However, some insurers also charge a cancellation fee if you want to get out of your policy early.

If you’re switching insurance companies, make sure to have the new policy lined up before you cancel the old one—and tell the new insurer exactly when your old policy is set to expire. Lapses in car insurance are illegal in many states and can result in fines. If you have an outstanding car loan or lease, you should also notify your lender that you have changed insurers.

If you’re cancelling your policy because you’re moving to a new state, note that you will typically have to show proof of insurance when you register your car there. States have different rules regarding the types and amounts of insurance that you’re required to carry.

Does Esurance Give Refunds if You Cancel Before the Covered Term?

Since you pay for the Esurance protection plan well in advance, you can get a prorated refund if you cancel your subscription before its term. You should receive a refund from Esurance in the form of checks.

What happens when your car insurance is canceled for missing a payment?

If you miss a car insurance payment, you’ll receive a legally required notice of cancellation from your insurer. This notice may come in the mail or by a phone call or email.

You’ll usually have 10 to 20 days between the date of the cancellation notice and the date you are no longer covered. The exact amount of time differs by state. After that, your insurance will officially lapse and you’ll no longer be able to drive your car legally. In some states, letting your insurance lapse also voids your registration — either right away or a few weeks after your insurance lapses. But no matter where you live, the longer you wait before rectifying the problem, the greater the consequences will be. So make sure you contact your insurance company immediately.

Long-term consequences of canceled insurance due to missed payments

If your car insurance lapses or is canceled, whether it’s because of nonpayment or any other reason, you will likely face financial ramifications of some kind. The consequences can continue even after you have reinstated your insurance. Here are some possible outcomes of missing your car insurance payments.

Administrative fees at the DMV: Some states will charge you for even a brief lapse in insurance coverage. For example, in New York, drivers have to pay $8 per day for up to 30 days during which their insurance was lapsed, with increased penalties thereafter. Car registration or driver’s license suspension: Nearly every state requires drivers to insure their cars in order to register them, and many states require insurance companies to notify them if you let your insurance lapse. This could result in the automatic suspension of your car’s registration or your driving privileges, leaving you unable to legally drive. You might even be required to carry an SR-22 if you are caught driving while uninsured, especially if you cause an accident. Higher auto insurance rates: Insurance companies like to see that drivers can reliably pay their bills on time every month. People who let their coverage lapse, even for a short amount of time, will likely see an increase in car insurance prices the next time they renew. Repossession of a loaned/leased car: Most car lenders require you to maintain full insurance coverage on the vehicle as long as the vehicle is financed. If your car lender finds out you are not carrying insurance on the vehicle, it may repossess the car. Your credit score can drop: If you owe money on your car insurance and your insurer passes the debt to a collection agency, it will likely impact your credit score. This can affect your ability to get a credit card or loan, and the derogatory mark will remain on your credit report for up to seven years.

How to Cancel Esurance Car Insurance: The Bottom Line

Canceling Esurance auto insurance isn’t bad. However, if you cancel Esurance before you get another policy, it creates a coverage gap (also known as a lapse in car insurance).

To avoid a lapse in auto insurance, set up a newpolicy before you cancel with Esurance.

Now that you know how to cancel Esurance car insurance, use our free online quote tool to compare multiple insurance companies in your area.

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