Is There a Fee to Cancel Liberty Mutual Auto Insurance?
Last Updated on December 22, 2020
Liberty Mutual is one of the largest auto insurance companies in the United States. Like other large auto insurance companies, Liberty Mutual does not charge a cancellation fee to most customers.
Liberty Mutual makes it easy for customers to manage their policy, cancel a policy, and adjust coverage. You can call Liberty Mutual to cancel car insurance without a penalty. Or, you can manage your account online.
In fact, many policyholders receive a refund on Liberty Mutual car insurance after a cancellation. Liberty Mutual may return premiums you have already paid, for example.
Today, we’re explaining everything you need to know about a Liberty Mutual cancellation fee, including how much it costs to cancel car insurance with Liberty Mutual.
Liberty Mutual Does Not Charge Cancellation Fees to Most Customers
Most Liberty Mutual policyholders can cancel their car insurance without paying a cancellation fee. Most customers can contact Liberty Mutual, pick the date they want car insurance to end, and pay premiums up to that date without penalty.
However, car insurance cancellation fees vary according to your state.
Some Liberty Mutual customers report paying cancellation fees up to $100 to cancel their car insurance. Liberty Mutual might charge cancellation fees or other penalties, depending on your state.
Most customers can cancel Liberty Mutual car insurance without paying a penalty. However, don’t be surprised if Liberty Mutual tries to charge a cancellation fee – it may be permitted under your state law.
How to Cancel Liberty Mutual Car Insurance
Liberty Mutual, like most major car insurance companies in the United States, lets you manage your car insurance policy online or over the phone.
You can call Liberty Mutual to cancel car insurance. Or, you can log in to your Liberty Mutual account.
However you cancel your policy, it’s a straightforward process. You choose the date you want your Liberty Mutual car insurance to end, then pay premiums up to that date.
Please note that the cancellation date for your Liberty Mutual car insurance needs to be the same date your new policy starts. If you cancel Liberty Mutual car insurance on December 1, then your policy expires at 12:01 am on December 1. Your new car insurance policy needs to begin on December 1.
Or, if you’re canceling car insurance because you no longer plan to drive, then you can cancel car insurance whenever you like, although you must stop driving on that date.
Get a Refund on Liberty Mutual Car Insurance
If you cancel your Liberty Mutual car insurance policy, you should receive a refund on any premiums you have already paid.
If you pay your car insurance upfront in 6-month or 12-month terms, for example, then cancel car insurance in the third month, then you are entitled to a refund on all premiums paid for dates after your cancellation date.
State laws vary. Some states require insurance companies to provide a complete refund on all unpaid premiums. Other states allow insurance companies to retain a portion of premiums or charge a cancellation fee.
Some states allow insurers to deduct a “cancellation fee” from the refunded premiums. The insurer may be allowed to keep, say, 30% of the refunded amount. Instead of receiving a refund of $100 on prepaid premiums, you might receive a refund of $70 (assuming a $30 cancellation fee).
Even if you pay your car insurance month-to-month, like most drivers, you may receive a refund.
Let’s say you paid for car insurance on December 1, giving you complete coverage throughout December. You have paid for car insurance coverage until December 31. If you cancel your Liberty Mutual car insurance policy on December 10, then you are entitled to receive a refund on all premiums paid until December 31.
Cancellation and refund policies vary widely between states, so contact Liberty Mutual if you’re unsure about a refund.
Other Things to Know Before Canceling Liberty Mutual Car Insurance
Other things to consider before canceling Liberty Mutual car insurance include:
Avoid a Gap: If you let car insurance lapse, then you could face serious consequences. You could face fines or penalties if caught driving without insurance. Or, if you cause an accident, you could be forced to pay for all damage out of pocket – instead of having car insurance cover it. To avoid a gap, start your new policy the date your Liberty Mutual policy ends.
Contact Liberty Mutual to Ask About Discounts and Features: Liberty Mutual and all other major car insurance companies in the United States are competitive. They offer similar pricing to one another. If you receive a slightly better quote – or better features – with another company, then contact Liberty Mutual to see if you can price match.
Switch Often: Many drivers stick with one insurance company their entire life. That’s a mistake. It’s easy to switch car insurance companies in the United States – even if you’re in the middle of your policy. Compare car insurance quotes frequently to make sure you’re getting the best rates. If you’re unsatisfied with your current insurance company, then switch to a company with better rates.
Loyalty Discounts: If you have been a Liberty Mutual customer for at least three years, you could receive a loyalty discount. Liberty Mutual may not apply this discount automatically. Contact the company to see if they can lower premiums.
Once you’ve considered the pros and cons of canceling Liberty Mutual car insurance, it’s easy to cancel your policy without penalty.
How Much is the Liberty Mutual Cancellation Fee?
Most Liberty Mutual policyholders pay a $0 cancellation fee. For most policyholders in most states, Liberty Mutual does not charge a cancellation fee.
However, some drivers could pay a cancellation fee of up to $100, based on reports we see online.
Sometimes, this fee is strictly a cancellation fee: it’s a fee to discourage you from canceling your Liberty Mutual car insurance policy. Or, Liberty Mutual may deduct this fee from your refunded premiums – say, if you prepaid for car insurance upfront.
Final Word on Liberty Mutual’s Cancellation Fee
Liberty Mutual generally doesn’t charge cancellation fees. However, some customers report paying cancellation fees up to $100 to cancel their Liberty Mutual car insurance.
Most policyholders in most states, however, will not pay a cancellation fee with Liberty Mutual – and most customers are entitled to a refund on any premiums you have already paid.
To cancel your Liberty Mutual car insurance without paying a cancellation fee, contact the company by phone or log in to your online account dashboard.