Is There a Fee to Cancel Mercury Insurance?

Last Updated on May 10, 2022

Mercury Insurance provides car insurance across the United States. If you cancel your Mercury auto insurance policy, you could pay a cancellation fee of 10% of the remaining premiums.

Some customers report paying a cancellation fee with Mercury Insurance, while others pay no fee whatsoever. You may or may not pay a cancellation fee depending on your state, your renewal date, and other factors.

Keep reading to discover everything you need to know about canceling Mercury Insurance and the fees you can expect to pay.

Table of Contents:

Mercury Insurance May Charge a Cancellation Fee of 10% of Remaining Premiums

Some insurers charge a cancellation fee, while others do not. According to our research, Mercury Insurance charges a cancellation fee of 10% of the remaining premiums.

If you cancel your policy before your renewal date, then you may need to pay Mercury Insurance a portion of your unpaid premiums as a cancellation fee.

Let’s say you bought a 6-month policy from Mercury Insurance for $600. You cancel that policy after 2 months. You’ve already paid $200 worth of insurance, and you have $400 of unpaid premiums remaining on your policy. Mercury Insurance may charge a cancellation fee of 10% of unpaid premiums, or $40.

However, if you have already paid your Mercury Insurance policy upfront, then you should receive a refund on those prepaid premiums, minus a cancellation fee.

How to Cancel a Mercury Insurance Policy

You can cancel a Mercury Insurance policy by phone, mail, or an in-person meeting.

You can call Mercury Insurance at any time to cancel your policy. Call Mercury’s customer service line to cancel your policy.

If you have a local Mercury Insurance agent, then you can contact the agent directly to cancel your policy.

Alternatively, you can cancel your Mercury Insurance policy by mail.

You cannot, however, cancel your Mercury Insurance policy online.

However you cancel your Mercury Insurance policy, you’ll need to provide your name, address, phone number, policy number, the reason for cancellation, and desired expiration date.

How to Avoid the Mercury Insurance Cancellation Fee

If you cancel your Mercury Insurance policy in the middle of a policy, then you may need to pay a cancellation fee.

However, you can avoid this cancellation fee by canceling your policy at the end of a term – like on your renewal date.

A typical Mercury Insurance policy lasts 6 to 12 months. Depending on your renewal date, you could avoid a cancellation fee by waiting a few months.

If you need to cancel your Mercury Insurance immediately and cannot wait until the renewal date, then you cannot avoid the cancellation fee. However, Mercury Insurance customers in some states report paying no cancellation fee whatsoever.

Receive a Refund on Prepaid Mercury Insurance Premiums

Mercury Insurance, like most insurance companies, provides a refund on prepaid premiums.

If you have already paid for your Mercury Insurance policy upfront and cancel your policy in the middle of the term, then Mercury Insurance will refund those previously paid premiums, minus a cancellation fee.

Let’s say you buy a one-year auto insurance policy from Mercury Insurance. You paid $1,000 for one year of coverage. You cancel your Mercury Insurance policy after half a year. Mercury Insurance refunds $500 to you because you already paid this amount. Mercury Insurance will also deduct a cancellation fee of $50, or 10% of the remaining premiums on your policy.

Other Things to Know When Canceling Mercury Insurance

People cancel and switch car insurance companies every day. It’s not unusual. However, there are some things you need to know when making the switch.

Do the Math on Cancellation Fees: Mercury Insurance charges a cancellation fee of 10%. If you’re switching to a new insurer to save money, then this cancellation fee could wipe out savings. Instead, wait for your Mercury Insurance renewal date to cancel your policy, and you can cancel your policy without penalty.

Activate New Insurance the Same Day: To avoid a lapse in coverage, you need to activate your new auto insurance policy the same day you cancel your old policy. If you cancel your Mercury Insurance policy for December 12, for example, then your new policy needs to begin on December 12. Some drivers mistakenly wait until December 13, leaving them with a lapse in coverage.

Check Savings, Coverages, and Discounts With Your New Insurer: It’s okay to switch to a new insurance company to save money. However, make sure the new company has the same coverages and limits as your Mercury Insurance policy. Some insurers impress you with cheap upfront rates, only to raise premiums after the underwriting process. Be sure to get a formal estimate from your new insurer before canceling your old policy.

You Can Switch at Any Time: You can switch to a new insurer from Mercury Insurance at any time. If you decide to move to a new insurer, then you don’t need to wait until your renewal date (unless you want to avoid the cancellation fee). Whether it’s one day, one week, or 11 months into your Mercury Insurance policy, you can switch at any time.

Follow Up on Your Refund: You are entitled to a refund from Mercury Insurance for any prepaid insurance premiums. Follow up with Mercury Insurance about your refund to ensure you receive the money owed to you.

Contact Mercury Insurance to Verify Cancellation Fee: Some customers report paying a 10% cancellation fee with Mercury Insurance, while other customers report paying nothing at all. Depending on your state and your policy options, you could avoid a cancellation fee.

Final Word – Mercury Insurance Cancellation Fee

Mercury Insurance charges a cancellation fee of 10% to most customers who cancel their policy in the middle of the term. You owe Mercury Insurance 10% of the remaining premiums on your policy.

You can avoid this cancellation fee by canceling your Mercury Insurance policy on or around your renewal date.

If you prepaid for car insurance upfront, then Mercury provides a refund on prepaid premiums, minus your cancellation fee.

To verify Mercury Insurance’s cancellation fee policy, contact Mercury Insurance today. Depending on your state and policy options, you may or may not pay a cancellation fee.

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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