Is There a Fee to Cancel USAA Auto Insurance?
Last Updated on November 14, 2023
USAA is one of the most popular and best-rated car insurance companies in the United States. But is there a fee to cancel USAA car insurance?
USAA does not charge any cancellation fees. In fact, many customers receive a refund on prepaid USAA premiums. If you have already paid for USAA car insurance upfront, then you may receive a refund on any premiums you have already paid.
Today, we’re explaining everything you need to know about USAA car insurance cancellation fees, including how much you can expect to pay.
USAA Does Not Charge Cancellation Fees
USAA has no official cancellation fee policy in any state. As far as we can tell, USAA does not charge any type of cancellation fee whatsoever, regardless of your state.
The only time you pay a fee when canceling USAA car insurance is if you let your policy lapse without informing USAA. In this situation, you may need to pay overdue premiums and late fees.
For all other policyholders in normal situations, however, USAA does not charge any cancellation fees.
In fact, USAA lets you cancel your policy at any time and receive a prorated refund on any premiums you have already paid. You can cancel your USAA car insurance at the end of your policy. Or, you can cancel it in the middle of your policy and receive a refund.
USAA is well-rated for customer service and claims satisfaction, so it makes sense the company has generous cancellation policies. However, most insurance companies in the United States have similar cancellation policies.
How to Cancel USAA Car Insurance
To cancel USAA car insurance, you’ll need:
- Your name, address, date of birth, and Social Security Number
- Your policy number
- The date of cancellation
- The name and policy number of your new insurance policy if you’re switching to a new company
- The reason for canceling USAA car insurance (say, cheaper prices or moving to a new state)
If you have all of these things, then you can cancel your USAA car insurance. Depending on your state and situation, USAA could require you to fax or mail in signed documents to complete the cancellation process.
Most USAA customers cancel their accounts by phone. They log in to their online accounts and then contact a customer service representative via the online chat system. Others cancel their policy by phone, calling the USAA customer service department to cancel their policy.
You can also cancel USAA car insurance entirely by email or mail.
Things to Consider Before Canceling USAA Car Insurance
Canceling USAA car insurance is easy. In many cases, it’s a smart decision. You might have found cheaper rates and better coverage through a competing provider. Or, you might have moved to a new state or made another major life change.
Whatever the reason for canceling, things to consider before canceling USAA car insurance include:
You Can Cancel Car Insurance Any Time: Most car insurance companies in the United States allow you to cancel car insurance at any time, and you can even receive a refund on prepaid insurance policies. It’s easy to make a switch, which helps keep insurance companies competitive.
Don’t Wait for Renewal: Some policyholders compare car insurance when they’re preparing to renew their policy. However, you don’t have to wait for renewal to cancel your car insurance. You can cancel any time you’re unhappy with your current service provider.
Avoid a Lapse: A lapse in car insurance is risky. It’s illegal in most states, and it could force you to pay for an accident out of pocket. To avoid a lapse in coverage after canceling USAA car insurance, make sure your new policy starts the same day your old policy ends. If you cancel USAA car insurance on February 1, for example, then make sure your new auto insurance policy starts on February 1.
Ask to Match Features or Prices: If you’ve been a loyal USAA customer for years, then you may be entitled to a loyalty discount. Many insurance companies offer loyalty discounts to customers who have a long track record of sticking with a company. If you are considering switching away from USAA, then contact the company to see if they can match rates or discounts. USAA rates tend to be very competitive with other major car insurance companies in the United States, and the company may lower rates to keep your business.
Ask for a Prorated Refund: Whether you pay car insurance in full upfront or go month to month, you may be entitled to a prorated refund on any premiums you have already paid. Ask USAA for a prorated refund before canceling your policy. If you have already paid premiums upfront, then you are entitled to a refund on the unused portion of premiums.
How to Receive a Refund on USAA Car Insurance
USAA doesn’t charge cancellation fees. In fact, in most states, you’ll receive a refund on any car insurance premiums you have prepaid with USAA.
If you pay for USAA car insurance premiums upfront, then you are entitled to a refund on any unused premiums.
Let’s say you paid for a full 6-month USAA car insurance policy upfront. You decide to cancel in the fourth month. USAA will refund the final two months’ worth of premiums. You did not use this car insurance, so you are entitled to a refund.
Specific refund policies vary between states. In most states, however, you’ll have no issue receiving a refund on USAA premiums that you have already paid.
Final Word – USAA Cancellation Fees
USAA does not charge cancellation fees. If you are a USAA customer, then you can cancel your car insurance at any time and receive a complete refund on any premiums you have already paid.
However, if you have overdue premiums, then USAA may charge late fees and require you to pay overdue premiums.
If you found a better car insurance provider, or if you’re unsatisfied with USAA car insurance, then you can cancel your policy today without paying a cancellation fee in any state.