Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Most car insurance providers offer options for either six-month or one-year policy terms to their insureds
  • If you only need car insurance coverage for one year, then you can generally find coverage from any of the major auto insurance providers in your area
  • If your car insurance company offers coverage for a period of six months, your policy will likely renew for another term to account for the entire year that you need coverage
  • It is easy to cancel your coverage at any point that you no longer need it by simply informing the auto insurance company that you are going to stop your policy
  • The only reason that you should cancel your auto insurance coverage is if you are no longer going to be driving your car for a period of time and will not need to show proof of auto insurance

It is the auto insurance company that decides of the length of the policy terms that it will offer to drivers.

If you want to stop your auto insurance coverage before the official end of your policy term, you simply notify the auto insurance provider of your intention to stop coverage.

They will stop sending bills for the remainder of your policy term or refund the amount of the premium that you have paid in advance and have not used for that term.

Find the coverage you need for the best price. Enter your zip code above to begin comparing quotes.

How to Stop Your Auto Insurance Coverage

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Canceling your auto insurance coverage is not a complicated process, but it is important that you see it through so that you can claim any premium refund that you may be entitled to from the auto insurance company.

You cannot just assume that the company knows you no longer want coverage because you just stop sending in your premium payments.

If you are confused about how to stop your auto insurance coverage, you should contact your auto insurance provider directly about how the process works.

They will be happy to answer any questions that you might have about their procedures and what you need to do to cancel or suspend your coverage.

In light of the state laws that require you to have car insurance coverage for driving a car on public roads, you never want to go without an auto insurance policy if you plan to drive.

In fact, if you go forward with stopping your auto insurance coverage before you stop driving, you could be at risk for having your driver’s license suspended and paying a large fine to the state.

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When Your Auto Insurance Coverage Becomes Too Expensive

If you are only interested in auto insurance coverage for one year because you think insurance coverage is too expensive for you, there are more options available than you might realize. Here are some suggestions:

  • Reduce coverage
  • Reduce policy limits
  • Look for discounts
  • Compare quotes online

You can always cut down on certain coverages on your policy or decrease your overall policy limits to immediately reduce the rate that you will have to pay for coverage.

In addition to these price-cutting measures, you could also ask your auto insurance company to check for any discounts that you may be able to have applied to your premium.

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Discounts are different for each auto insurance company. Even if you are not eligible for discounts from one auto insurance provider, there may be more opportunities for you to save money with another car insurance company.

That is precisely why it is so good for you to take the time to get a range of different quotes for auto insurance rates. You can shop online for auto insurance quotes and will be able to easily find out what the options in your area are.

Even though this information only takes a few minutes to find out, you can end up saving a significant amount of money by not just accepting the first quote that you are offered.

What Happens at the End of a Car Insurance Policy Term

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The majority of auto insurance companies have set up a system for your auto insurance coverage to renew automatically at the conclusion of its current term.

Automatic renewal is a good thing for most drivers because it means that you will not have to remember to sign up for auto insurance again. It could save you from getting in trouble with law enforcement for driving without having the required coverage.

Most people will not hear anything from their auto insurance company before their policy renews.

However, it is possible that you will have a rate adjustment for your car insurance policy when you start a new policy term because of something that happened in the previous policy term.

Your auto insurance rate is not allowed to go up until a new policy term starts. It is possible for your rate to increase just because the company has adjusted its overall rates in response to changes in the insurance market.

Another scenario that may occur at the end of a policy term is that your auto insurance company could inform you that they will no longer be extending coverage for you.

One of the primary reasons why you could be denied coverage for another term is that you consistently did not pay your auto insurance premium on time.

The other likely factor in not having your car insurance policy renewed is that you had a serious accident or claim filed against you during the last policy term.

If the car insurance company had to pay out for an expensive claim that you caused, they may find that it is too expensive to continue to provide you with car insurance coverage for another policy term.

Some Final Words on Getting Car Insurance Coverage for One Year

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It is certainly possible to get the car insurance coverage you need for a one-year period. If you are the owner of a car insurance policy, then you have the right to cancel that policy at any point.

The most important thing you need to be aware of is that it is illegal to continue to drive your car if you do not have some sort of coverage for it. It is never wise to cancel your coverage before you are positive that you will no longer be driving your car.

If you want to stop your coverage at the end of a one-year policy term, then you just have to tell the auto insurance company that you do not intend to renew your car insurance coverage for another term.

Find the best rate for coverage by comparing top companies side-by-side. You can do that right here by entering your zip code into our free comparison tool.