Insurance cancellation letter 2023 (guide + free samples)

This post covers an Insurance cancellation letter.

If you are thinking of canceling your insurance policy you are not alone.

In fact, 5 million policyholders have canceled an insurance policy within the past five years, and 1.4 million have canceled two policies (source)

Since you are now looking for a perfect insurance cancellation letter i assume you have already made your decision to cancel your policy.

And my task here is to give you what you are looking for.

Writting an effective Insurance cancellation letter should never be a hassle. (it would be a hassle if you would never find this guide)

Here I will guide you on everything you need to know about that; specifically, I will take you through

  • What is an Insurance cancellation letter?
  • Why do you need to write an Insurance cancellation letter?
  • Things to consider before writing your letter
  • How to write an effective Insurance cancellation letter
  • Insurance cancellation letter format
  • Insurance cancellation letter sample
  • Insurance cancellation letter word

Jump to section

What is an Insurance cancellation letter?

An Insurance cancellation letter is a brief statement of fact written by an insurance policyholder to an insurance company to cancel a certain insurance policy.

This letter is necessary whenever a person wants to terminate his insurance policy be it car/auto insurance, health insurance, life insurance, home insurance, etc.

Why do you need to write an Insurance cancellation letter

Well, your insurance policy is an official contract and thus it provides procedures through which it can be effectively terminated.

In most cases procedure is to issue a notice in a certain period of time to that effect.

Therefore you need an insurance cancelation letter to comply with the provision of your policy contract.

In fact, your letter will act as an official notice of termination

Further, a cancelation letter is the easiest way to document the specifics of the termination between the insurer and the insured.

Additionally, it is an opportunity to legally reveal additional information about the cancellation of the policy, such as the grounds for the cancellation.

Lastly, an Insurance cancellation letter will help to safeguard you in the event that any legal issues arise in the future.

Things to consider before writing your letter

The following are the important things to consider before writting your letter and officially communicating your intent to cancel your insurance policy.

Consider the risk of canceling your current policy

Before writing your letter you have to play a risk-reward game.

Are winning? that’s should be your goal.

Canceling a policy involves a lot of risks and you must make sure your business and personal finances are not exposed to risk before you cancel an existing policy.

The following questions will help you ascertain the risk of canceling your insurance

  1. Will you be safe against expensive lawsuits and other claims?
  2. Will you save money by leaving yourself, your business, or your property uninsured?
  3. Will changing your coverage suit your needs more than canceling your policy?

After carefully weighing the risks, you can now decide whether to cancel your insurance.

If the risks are larger than you anticipated, you may still cancel the insurance but move to a suitable company as soon as possible.

Ascertain the reasons to include in your letter

After being settled that you need to cancel the insurance regardless of the risk the next thing to consider are the reasons for cancelation.

This is very open.

You either believe you’re paying too much for insurance (make sure you do), you just need a different coverage, You’re moving out of state, and your current insurer doesn’t offer policies in your new location, you wish to combine various insurance into a single, less priced plan or you’re unhappy with the service your insurer provides or

The ground is yours.

Review your policy contract

Before filing your cancellation request, ensure that your request is in accordance with the conditions of your insurance policy.

Examine the conditions of your policy to learn more about your cancellation rights.

Policyholders typically have up to 14 days from the policy’s effective date to terminate the coverage without penalty, though this varies depending on the agreement.

For policies that have been in existence for a longer period of time, you may be required to provide 30 days’ notice (maybe longer) or wait until the contract is up for renewal.

Keep a new policy on standby

No matter what! NEVER stay uninsured.

Make sure your new policy is ready to go.

If you intend to replace your current policy with one that is better, more affordable, or more suitable, do your homework in advance and compare quotes from various providers.

How to write an effective Insurance cancellation letter

An Insurance cancellation letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the insurer’s address, and open your letter by stating that you are writing to cancel your policy (mention the policy), provide the effective date, and include any further steps to be taken.

Finish your letter with SINCERELY followed by your name and signature.

REMEMBER the aim of your Insurance cancellation letter is to legally notify the insurer of your intentions to cancel the policy.

Therefore, the following is how you can write an effective Insurance cancellation letter

  • Provide your name, address, and contact information
  • Include the date of the letter
  • Include the insurer’s, name, address, and contact information
  • Open your letter by stating clearly that you are writing to cancel your policy
  • Indicate the specific policy you are canceling
  • Provide the policy number.
  • Indicate the effective date of cancelation
  • Explain the reasons for cancelation -optional
  • Where necessary Make reference to your policy agreement.
  • Explain what you want the company to do in response to your letter- it may be to send a confirmation letter, cancel any charges, etc.
  • Include a request for a refund of unused premiums
  • If applicable attach any necessary documentation
  • Be concise and to the point
  • Maintain a professional tone
  • Be honest

Insurance cancellation letter format

[Your Name]
[Your Adress]
[City, State, Zip Code]




[Recipient’s name]
[Name of the insurance Co.]
[City, State, Zip Code]

Re: Notice to cancel [insert a policy name and number]

Dear Mr./Ms [recipient’s last name]

Please accept this letter as my official notice to cancel my above-captioned insurance policy effective [effective date]

I would appreciate you providing me with formal confirmation that the cancellation has been made within 30 days.

Please stop debiting my bank account for monthly premium payments and return the percentage of my policy premium that was not utilized.

I appreciate your understanding and quick response to this issue.

You may contact me through [email] or [phone] for any concerns.




Insurance cancellation letter sample

Dear Mr. Brown

Please take this letter as my official notification to cancel the aforementioned insurance policy effective May 30, 20…

I would appreciate it if you could provide me with formal confirmation that the cancellation was effected within the next 30 days.

Stop deducting money from my bank account to pay my monthly premiums, and give return the portion of my policy premium that was not used.

I value your understanding and prompt attention to this matter.

If you have any questions, you may reach me at 555-198-9987 or


Joana King

Insurance cancellation letter word

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Isack Kimaro
Isack Kimaro

Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. I am dedicated to providing valuable and easy-to-understand legal information for individuals at all levels of understanding. Whether you are a layperson looking to increase your knowledge, a law student striving to excel in your studies, or a practicing lawyer wanting to expand your expertise, I am here to help. I'm not creating content, I'm creating awareness to empower you to take control of your legal understanding and achieve your goals.