Canceling Auto Insurance

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 30, 2010

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Mount Airy, NC

Asked on 07/30/2010

Canceling Auto Insurance My son recently canceled his automobile insurance and turned in his tags June 28.He called his agent to inform them of this.July 21,2010, he is notified by mail he owes $94.64 and his policy is being canceled due to non-payment for July and August payment. We are told you cannot cancel a policy in mid-term in NC.Is GMAC correct?

Answer given on July 31, 2010

While I don’t know NC law, it seems very unusual that a person could not cancel an insurance policy if they no longer own a car.  I am wondering what his insurance agent told him when he called to cancel his insurance.  Did they say he could not cancel?  it seems odd that he cannot cancel his policy but the insurance company can do so for non payment of the premium and disregard the policyholder’s request to cancel.  He needs to call his agent and get clarification.

You mention GMAC.  If your son had a loan on the car, it is possible he couldn’t cancel the insurance until the car was paid off.  If he still owes money, the insurance company may not be allowed to cancel the policy. 


IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption