Is There a Fee to Cancel AAA Insurance?

Last Updated on April 30, 2022

AAA sells auto insurance across the United States. If you need to cancel your AAA auto insurance policy, then you could pay a cancellation fee of around 10% of your remaining premium.

Unlike most major car insurance companies, AAA does charge a cancellation fee to some customers. Although some customers can cancel their policy without penalty, others pay a hefty cancellation fee.

Keep reading to discover everything you need to know about canceling your AAA auto insurance policy.

Table of Contents:

You Could Pay a 10% Cancellation Fee with AAA

AAA does not have a single, companywide cancellation policy. However, drivers in some states report paying a cancellation fee of 10% with AAA.

Depending on your state, you could pay a cancellation fee of 10% on the remaining premiums.

Let’s say you pay $100 per month for car insurance. You cancel your AAA policy on April 15. AAA sends you a refund of $50 for the premiums you have already paid (the last half of the remaining month), then deducts a cancellation fee of $5, giving you a total refund of $45.

If you have a 6-month or 12-month policy with AAA, then a 10% cancellation fee could be steeper. If you cancel your AAA policy in the second month of a 12-month policy, for example, then you could pay hundreds of dollars in cancellation fees.

Contact AAA to Verify Cancellation Fees

AAA charges cancellation fees to some customers but not others. To determine if you’ll pay a cancellation fee, contact AAA.

Because of the cancellation fee, it may be worth waiting until renewal to cancel your AAA auto insurance policy. At renewal, you can cancel your AAA policy without penalty.

How to Cancel AAA Auto Insurance

You can cancel your AAA auto insurance policy by contacting AAA. Call AAA at 1 (877) 387-8378.

Alternatively, you can contact your local AAA agent or visit your AAA office in person to cancel your policy.

You can also cancel your AAA policy by mail. Write a letter to AAA with your policy number, desired cancellation date, name, and contact information, and AAA can cancel your policy.

Things to Consider Before Canceling AAA Car Insurance

There are certain things to consider before canceling AAA car insurance, including:

Wait Until Your Renewal Date: If AAA is charging a 10% cancellation fee, then wait until your renewal date to cancel your policy. You may save money by switching to a new insurer, but the 10% cancellation fee wipes out those savings. By waiting closer to your renewal date, you can turn a hefty cancellation fee into a smaller fee (or even a $0 fee).

Get Complete Pricing Estimates Upfront: AAA offers competitive auto insurance premiums across the United States, but they’re rarely the cheapest insurance provider in any state. Before canceling your AAA policy, verify the new insurer is offering cheaper rates. Some insurers dazzle drivers with cheap upfront prices, only to raise rates after you complete the underwriting process. Verifying pricing estimates is particularly important if you have at-fault incidents, speeding tickets, and other incidents on your driving record.

Start Your New Policy on the Date You Cancel AAA: Make sure your new auto insurance policy begins on the same date your old AAA policy ends. If you cancel your AAA policy for April 15, for example, then your new policy needs to start on April 15. Some drivers leave a gap, and this gap can leave you under-insured. Most insurance policies end at 12:01am on the date of cancellation, which means your new policy needs to start on that same date.

Add Roadside Assistance to Your New Policy: AAA is best known for its roadside assistance packages. If you have AAA car insurance, then you may also have AAA roadside assistance. When switching to a new insurer, you may or may not have roadside assistance bundled with your policy. Most insurers offer roadside assistance as an added perk for $30 to $100 per year. Roadside assistance covers roadside breakdowns, flat tire changes, towing, and vehicle lockouts, among other emergencies.

AAA Provides Refunds on Prepaid Car Insurance Premiums

If you cancel your AAA policy today, you may receive a refund on the car insurance premiums you have already paid.

AAA, like most insurers, refunds money you have already paid for car insurance. Although AAA may deduct a cancellation fee of 10% from this amount, the remainder is owed to you.

Your refund is pro-rated based on the days remaining in your policy. If you have prepaid for six months of auto insurance, for example, and just ended your second month with AAA, then AAA will provide a refund on the remaining four months for which you’ve already paid, minus your cancellation fee.

Contact AAA to verify you received a refund for your auto insurance.

How to Avoid AAA Cancellation Fees

Some customers report paying a 10% cancellation fee with AAA, while others claim to have paid no cancellation fees whatsoever.

Depending on your state or region, you could pay a 10% cancellation fee. Or, you could pay zero-fee whatsoever.

If you live in a region or state where AAA charges cancellation fees, then you cannot avoid these cancellation fees if you want to cancel your policy.

The best way to avoid AAA cancellation fees is to wait until your policy renewal date before canceling your policy. If you wait until your renewal date, then you will not pay a cancellation fee.

Information Needed to Cancel AAA Car Insurance

AAA may require the following information to cancel car insurance:

  • Name, address, phone number, and date of birth
  • Driver’s license number
  • Policy number
  • Your desired cancellation date

You can contact AAA by phone, mail, or in person with this information to cancel your policy.

Final Word – AAA Insurance Cancellation Fee

AAA could charge drivers a cancellation fee of around 10%. Some drivers report paying a cancellation fee with AAA, while others claim they paid no fee whatsoever.

Contact AAA to verify cancellation fee policies in your state. Most major insurers do not charge a cancellation fee, and you may be able to cancel your AAA policy without penalty.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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