Is There a Fee to Cancel The General Insurance?

Last Updated on March 3, 2022

The General is a Nashville-based car insurance company specializing in insuring high-risk drivers. If you cancel your policy with The General, then you may pay a cancellation fee.

Unlike most insurers, The General does charge cancellation fees. The General charges a cancellation fee of 10% of the remaining unpaid premiums for the policy period. However, The General may also provide a refund on premiums you have already paid.

Keep reading to discover everything you need to know about The General’s cancellation policies and cancellation fees.

Table of Contents:

How to Cancel The General Car Insurance

The General does not accept cancellations online or by phone. Instead, you must cancel your policy in writing.

To cancel your policy with The General, send a letter requesting cancellation to:

The General
2636 Elm Hill Pike, Suite 100
Nashville, TN 37214

Your letter must list your name, policy number, and desired date of cancellation. You may also want to add your address, phone number, Social Security Number, date of birth, driver’s license number, and signature.

The General will cancel your policy on your desired date. However, they will charge a cancellation fee.

The General Cancellation Fee

The General charges a cancellation fee of 10% if you cancel your policy early. The General mentions this cancellation fee in its policy documents.

That 10% fee applies to all remaining unpaid premiums. If you cancel your 6-month auto insurance policy in month 3, for example, then you pay a cancellation fee of 10% of your remaining 3 months of coverage.

Depending on your situation, it may be worth it to wait for renewal before making a switch to a new provider. If you only have a few weeks remaining in your car insurance policy with The General, for example, then you may want to activate your new car insurance policy on the date your car insurance policy with The General is scheduled to end, then submit a cancellation request to The General.

How the Cancellation Fee Works

To determine if it’s worth it to cancel your car insurance policy with The General today, you may need to do the math. Here’s how the cancellation fee works:

  • Let’s say you pay $200 per month for car insurance with The General.
  • You purchased a 12-month policy from The General in January and pay your insurance month-to-month.
  • Now, it’s November and you wish to cancel. You write a letter to The General requesting cancellation of your policy on November 30.
  • The General will charge a cancellation fee on all remaining unpaid premiums. That means you’ll pay a $20 cancellation fee (which is 10% of unpaid premiums from December, or 10% of $200).
  • You pay no other charges to cancel your car insurance policy with The General. If you have already paid premiums upfront, then The General may provide a refund.

To avoid this cancellation fee, you could wait until the end of December and your renewal date. At this point, you can cancel your car insurance policy without penalty.

How to Avoid The General’s Cancellation Fee

If you are canceling your auto insurance in the middle of your policy term, then there’s no way to avoid The General’s 10% cancellation fee. Your policy outlines this fee upfront, and you agreed to the terms of your policy.

However, you can avoid the 10% cancellation fee by waiting for your policy to end.

Whether you bought a monthly, 6 month, or 12-month policy with The General, your policy has an end date. Tell The General you do not wish to renew that policy after your end date. Then, you can switch to a new insurer and avoid paying a cancellation fee with The General.

Do the math to see if it’s worth it. Are you saving more than 10% by switching to a new insurer? If so, then it may be worth canceling your policy with The General and switching to that new provider today. If you’re not saving 10%, however, then it may be worth waiting until your policy ends before making the switch.

The General Provides Refunds on Premiums You Have Already Paid

If you already paid car insurance premiums to The General, then you cancel your policy mid-term, then you may receive a refund on those premiums.

Let’s say you paid The General’s car insurance premium for the month of November. You cancel your car insurance policy on November 15. The General should provide you with a refund on all unused car insurance premiums from the last 15 days of November.

Avoid a Lapse in Insurance Coverage

Before canceling your car insurance policy with The General, consider activating your new car insurance policy to avoid a lapse in coverage.

Ideally, your new car insurance policy begins on the date your old policy ends. If you cancel your policy with The General on March 15, for example, then your new car insurance policy must begin on March 15 to avoid a lapse in coverage.

A lapse in insurance coverage could lead to a driver’s license suspension. If your old insurer does not receive confirmation of your new insurance policy, then your old insurer may alert the DMV that you’re driving without insurance.

Other Things to Know Before Canceling The General Car Insurance

Before canceling your car insurance policy with The General, consider the following:

Confirm Pricing Before Making the Switch: The General caters mostly to high-risk drivers. If a new car insurance company appears to have offered a cheaper price than The General, then make sure to confirm pricing. The other insurance company may not know your full driving history, for example. You might be dazzled by a cheap quote, only to pay higher rates after making the switch. Some of The General’s policyholders may even be denied car insurance from conventional providers, forcing them to get insurance from high-risk providers.

Check Discounts: When you switch away from The General, you’ll lose certain discounts. Although The General offers similar discounts to other insurers, you may or may not qualify for these discounts. Verify these discounts before you switch to make sure it’s worth it.

Avoid a Lapse: A lapse in coverage could leave you dangerously uninsured for a brief period. Avoid a lapse by lining up your cancellation date from The General with your activation date from your new insurer. Your cancellation date and activation date must be the same date to avoid a lapse.

Do the Math on Cancellation Fees: The General charges a cancellation fee of 10% of the remaining premiums. If you’re saving more than 10% by switching to a new insurer, then it’s worth making the switch immediately. If you’re not saving 10%, then you’re losing money by switching insurers because of The General’s cancellation fees. Switch to a new insurer at renewal to avoid this cancellation fee.

Plan in Advance: The General doesn’t accept cancellation requests online or over the phone. You must write the company to cancel your policy. Don’t expect to cancel your policy immediately; instead, plan for the process to take 2 to 3 weeks.

Avoid Being Doubly Insured: Don’t buy a new car insurance policy and activate it today while you still have coverage with The General. You want to avoid having two policies for the same car. Instead, tell your new insurer to activate your policy at a future date and time – say, 3 weeks from now. Then, submit a letter requesting The General cancel your current car insurance policy on that same date.

Final Word – Canceling The General

To cancel your car insurance policy with The General, write a letter to the company requesting cancellation. That letter must contain your name, policy number, and desired cancellation date, among other information.

The General charges a cancellation fee of 10% of the remaining premiums. To avoid The General’s cancellation fee, wait for your car insurance renewal date before switching to a new insurer.

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.
Back to Top