D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Sep 9, 2021

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Can't-Miss Facts

  • If you recently sold your vehicle, you should remove it from your car insurance policy
  • Some car insurance companies charge a cancellation fee
  • Set up another car insurance policy before you remove a car from your insurance

Is it bad to remove a car from insurance? Some circumstances may require removing a vehicle from your car insurance policy, but when is the right time to remove a car from auto insurance?

Don’t worry. Our car insurance guide explains why you should remove a car from insurance, where to shop for the best coverage, and when to cancel insurance after selling a car.

Before you remove a vehicle from your car insurance policy, enter your ZIP code in the free online quote tool above to compare quotes from multiple companies near you.

Is it bad to remove a car from insurance?

It depends. If you’re still using your car, removing your vehicle from your current auto insurance policy is a bad idea.

You should set up another car insurance policy so that you won’t have any gaps in coverage. Car insurance companies correlate gaps in insurance with a higher risk of filing claims, and any gaps in car insurance coverage will generate more expensive rates in the future.

When should I remove a vehicle from a car insurance policy?

Some situations require that you remove a car from auto insurance. Here’s a list of examples where removing a vehicle is a good idea:

  • You sold your vehicle
  • Your vehicle is a total loss after an accident
  • You’re switching auto insurance policies

If you’re changing car insurance companies, be prepared to cancel with your current company to begin service with the new company.

For example, you can remove a car from a GEICO insurance policy after you buy car insurance with another company.

You should shop around before swapping car insurance companies to lock in the best rates.

Can I remove a driver instead of a car from a car insurance policy?

The short answer is yes. You can remove any driver on an auto insurance policy, but you must be the primary policyholder.

You can’t remove spouses without permission, regardless of policyholder status. However, parents can remove a teen driver, but we recommend that you keep teen drivers on your policy until they carry their own insurance policies. This will ultimately cover your bases if an accident occurs.

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How do I cancel a car insurance policy?

Contact the insurance company and let them know you want to cancel your auto insurance policy. Some car insurance companies make you pay a cancellation fee. You could pay between $15 and $50 to cancel your policy.

Other companies have something called a short rate fee, which is a fee that’s about 10% of your policy balance. Short rate fee percentages vary for each company.

Wondering how to cancel car insurance without charges? Shop around and compare affordable car insurance companies before you remove any cars from your policy so you can find a provider without cancellation fees.

The best insurance companies will allow you to cancel your policy without charging any associated fees.

Try to cancel your car insurance policy on a specific date. This gives you time to change your mind if a policy at another company doesn’t show promise. And it’s the best way to avoid fees.

Why is comparing car insurance companies important before removing a car from insurance?

Better auto insurance deals are always around. Take your time and look for car insurance quotes that work for you.

If you’re lucky, you can secure rates as low as $90 a month, but your car insurance rates are determined by several personal factors, such as age, driving record, credit history, location, vehicle, and coverage type.

If you’re on a restrictive budget, consider buying liability-only coverage. According to the NAIC, liability car insurance is $48 a month on average.

Examine the average monthly rates below to see how much full coverage and liability-only auto insurance costs:

Average Monthly Full Coverage vs. Liability-Only Car Insurance Rates
CompaniesMonthly Full Coverage Car Insurance RatesMonthly Liability-Only Car Insurance Rates
Allstate$318$162
American Family$224$114
Farmers$288$147
GEICO$179$91
Liberty Mutual$398$203
Nationwide$229$117
Progressive$283$144
State Farm$235$120
Travelers$287$147
USAA$161$82
Average$260$133

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Liability is more affordable than full coverage, but full coverage car insurance has more perks, such as roadside assistance, rental car reimbursement, collision coverage, and comprehensive insurance.

Is it bad to remove a vehicle from car insurance?

If you’ve sold your vehicle or have another policy waiting in the rafters, it’s okay to remove a car from your auto insurance policy.

We don’t recommend removing a vehicle without getting another car insurance policy to cover you.

Give yourself time to shop around for another insurance policy before canceling.

Now that you know how to remove a car from an insurance policy, use our free online quote tool below to compare multiple companies in your local area.