How to Cancel Geico Insurance

Questions:

Key Takeaways:

  • Geico takes policy cancellations over the phone at 800-841-1587.
  • The best time to cancel your Geico policy is at the end of the policy term.
  • If you still own a car, you need to obtain replacement coverage before canceling your Geico policy.

Hard as you try, some relationships just don’t work out — including relationships with your car insurance carrier. If you have an auto policy with Geico that you no longer need or want, know that ghosting isn’t an effective break-up strategy. You’ll have to face the music and tell Geico directly that you want to cancel your auto insurance.

how to cancel geico insurance

Geico’s Cancellation Policy

Thankfully, Geico does not have a complicated cancellation policy. The gist is that you’ll have to call 800-841-1587 and speak with a representative directly, who will take your policy number and desired cancellation date to record the policy termination. You can cancel the coverage immediately or on some future date. You’ll be responsible for your auto premiums through the cancellation date, but not after. If you’ve prepaid premiums beyond the cancellation date, you should get a partial refund.

Geico cancellation fees

Geico does not charge cancellation fees. But if you cancel in the middle of a coverage term, you may be subject to what’s called a short rate. When you’re charged a short rate, the carrier increases your premiums by a percentage for the term, then calculates your pro-rated fees from that higher amount[1]. Only certain states, like New York, allow this practice[2].

Here’s how a short rate works, compared to standard pro-rating. Say you initiate your policy on June 1 and the premium is $100 for 30 days. On May 15, you cancel the coverage. Pro-rating the premium would mean you’d owe $3.33 for each day of coverage, or $50 total for the 15 days. But if a short-rate is used, the carrier will add a percentage, say 10%, to the premium first, before pro-rating. That increases your total premium to $110, or $3.67 per day. You’d then owe $55 for the 15 days of coverage. It’s not called a cancellation fee, per se, but the short rate does result in higher costs.

Geico only uses short rates in certain states and when you cancel mid-term. You can avoid this extra charge by ending your Geico coverage the day the policy term would normally end.

Canceling Your Geico Insurance, Step by Step

Since you are legally required to carry auto insurance in most U.S. states, you don’t want to part ways with Geico on a whim. Also, if you still own your vehicle, Geico will probably require you to show proof of alternate coverage before you can cancel your policy. So, it’s best to be organized about the switch. That’ll streamline the process for you. Here’s how to proceed.

1. Know your Geico policy details

Pull out the declarations page of your Geico policy and make note of your current coverage levels. Unless you’re relocating out of the country or getting rid of your car once and for all, you’ll need to replace your coverages. To ensure you are comparing your options apples to apples, make sure you get quotes for the same coverage levels you have with Geico.

You should also take note of your coverage effective dates and billing status. To avoid any chance of being charged a short rate, you’ll want to cancel the Geico policy on the day that coverage expires. In that case, you wouldn’t owe additional premiums, nor would you be entitled to a refund.

2. Shop around

With your Geico policy details on hand, start shopping around for cheaper rates. New prospective carriers will ask for the date you’d like coverage to begin — plan on initiating the new policy a day before you intend to cancel your Geico coverage. The one-day overlap ensures you won’t be without auto coverage accidentally.

Even going a single day without coverage is a bad idea. For one, you shouldn’t be driving without car insurance. Accidents happen, no matter how careful you are. And they can be devastating financially and legally if you don’t have insurance. Plus, if you let coverage lapse, even for one day, your future premiums will increase. Insurers see gaps of time with no coverage as red flags, and they’ll charge you more as a result.

Keep a notebook or folder with your comparison quotes. That way, you can quickly review the coverages — to verify they’re all the same — and the associated premiums. Plus, you can stash any other notes and additional information in that same folder. For example, you should extend your research beyond the cost of premiums and look into insurers’ track records on customer service and claims processing.

3. Ask Geico to step up

Before you cancel your Geico auto policy outright, see if the coverage can be adjusted to suit your needs. The appropriate adjustment depends on your rationale for canceling. For example:

  • If you found cheaper premiums elsewhere, ask Geico to match competitors’ quotes. It doesn’t hurt to ask, especially if you’ve had a good experience with Geico. Geico will want to keep you as a customer if you’ve had a good history with them, free of moving violations and claims.
  • If you’re moving or getting married, get a quote from Geico using your new information. You might as well compare Geico’s rates to the other companies you shopped.

4. Initiate new coverage

If you’re sticking to the decision to switch carriers, initiate your new coverage before you cancel the Geico policy. Provide the new insurer with any outstanding documents or information needed, such as proof of vehicle ownership, any lienholder information, your driver’s license number, plus form of payment. Once coverage begins, you should receive temporary proof of coverage from the carrier within a day.

If your vehicle is financed, inform your lender of the switch. It’s likely your new insurer will do this for you, but it doesn’t hurt to doublecheck.

5. Cancel your Geico policy

You can cancel your Geico coverage once you’re certain you have other coverage in place.

The Fastest Way to Cancel Your Geico Auto Policy

Many insurers accept cancellations through several channels, but Geico will only cancel your policy over the phone. Here’s the process, as outlined on Geico’s website:

  • Call 800-841-1587.
  • You should be answered by an interactive voice system that asks why you’re calling. You can say, “Cancel insurance policy” and then, “Auto.”
  • You’ll be transferred to an agent who will need your Geico policy number to process the cancellation[3].

Before Canceling Your Policy

Drivers usually switch auto providers to save on premiums. But there are other considerations to weigh, too. Here are three that can catch you off-guard if you ignore them.

  1. Loss of discounts for bundled coverage: If you have bundled auto and home coverage with Geico, make sure you are getting comparable quotes from other insurers. It could be that the other insurer will give you a cheaper rate on auto coverage, but your homeowners insurance outside of a bundle will be much higher.
  2. Cash flow impacts: Switching auto insurance carriers can put you in a cash flow pinch. If you’re canceling your Geico coverage before the policy term ends, you may be owed a refund. But you’ll have to pay for the new policy well before you receive that refund. This is another argument for waiting to buy new coverage until just before your Geico policy expires.
  3. Customer service: According to a 2019 J.D. Power survey, Geico rates “better than most” in overall customer satisfaction, above State Farm, Progressive, Farmers, and Mercury. Weigh any prospective insurer’s customer service ratings against Geico’s before you make a switch. Cheaper rates from another carrier are great, but they may not make up for terrible customer service.  

Timing New Insurance with a Geico Cancellation

You shouldn’t ever be without auto coverage, so it’s best to plan for a one-day overlap of your new policy and your old Geico policy. Do the legwork early to make this happen. Get competitive quotes and research your prospective insurers. Allow yourself enough time to compare your options and make a clear-headed decision. Then, activate your new policy first before canceling your Geico coverage.

Canceling Geico Insurance FAQs

Does Geico charge a cancellation fee?

Geico does not charge a cancellation fee, per se. Certain states allow insurers like Geico to charge you a short rate if you cancel in the middle of your policy’s term. A short rate is a percentage that’s added to your premium and then pro-rated for the days you were covered.  

How quickly can I cancel my Geico insurance?

Geico can cancel your coverage immediately.

What’s the best way to cancel my Geico insurance?

Geico accepts cancellation requests over the phone only. Call an agent at 800-841-1587 with your policy number on hand to cancel your coverage.

Normally, breaking up is hard to do, but not with Geico. As long as you have replacement coverage in place, it only takes a phone call to cancel your Geico auto policy.

What should I do before I cancel my Geico insurance?

Before canceling your Geico insurance, make sure you have alternate coverage in place. The only exceptions are if you are getting rid of your car permanently, or you are moving out of the country.

Sources

[1] Suffel, J. (2008, April 10). What is the cancellation fee for Geico auto insurance if I terminate my policy early? Retrieved May 21, 2020, from https://www.quora.com/What-is-the-cancellation-fee-for-Geico-auto-insurance-if-I-terminate-my-policy-early/answer/Janet-Suffel

[2] Short-rate cancellation penalty & no-fault subrogation/surcharge. (2007, January 26). Retrieved May 21, 2020, from https://dfs.ny.gov/insurance/ogco2007/rg070107.htm

[3] How to cancel your GEICO car insurance policy. (n.d.). Retrieved May 21, 2020, from https://www.geico.com/information/faq/cancel-insurance/

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