Sample Insurance Cancellation Letter (+ Word Template)

An Insurance Cancellation Letter is an official document sent to an insurance company when a policyholder no longer wishes to pay premiums or enjoy the coverage of their policy. In most cases, insurance companies do not restrict or prohibit your right to cancel a subscription, but you will need to read through your policy before drafting this letter.

When you decide to cancel your policy, the first place to start is by checking your policy for cancellation provisions. Some insurers provide the exact steps of the cancellation process and the person’s contact information to who you should send your cancellation letter.

The following are some tips, a template, and a sample letter to help you cancel your insurance policy.

People take out insurance coverages to protect themselves, their businesses, or their loved ones from certain risks, such as car accidents, fires, and theft. Canceling an insurance policy is never a decision to be made on a whim, especially in today’s risky world.

Some of the reasons you may want to cancel your policy include:

• You believe you need different coverage.
• You think you are paying too much for insurance.
• You are unhappy about how the insurer has handled past claims.
• You are moving, and your insurer does not offer policies in your new location.

If you believe you have a legitimate reason to cancel your policy, you can file a cancellation notice with your insurer. It should include:

• The insurance company name, the correct contact person’s name, and department
• Your name, policy number, and coverage period as stipulated in the declarations page of your policy
• The date you would like the policy to be canceled.
• A statement that the insurer is no longer authorized to withdraw premiums from your account
• A request for a refund of unused premiums
• A request for written confirmation of the cancellation by the desired date

Your insurance policy will usually include instructions on how to cancel your policy, including to whom the letter should be addressed. In addition to this, consider the following pointers when drafting your Insurance Cancellation Letter:

• Mention that you would like to cancel the policy in the first paragraph
• State clearly that you would like to stop premium payments
• Always provide details such as your policy number and dates to facilitate easy tracking of your records.
• Keep your letter short and to the point.
• Avoid sending handwritten letters to prevent miscommunication in case your handwriting is illegible.
• Use a professional tone.

Insurance Cancellation Letter (Word Template)

Insurance companies will differ in how they process cancellations. It is crucial to always speak to an agent or read through your policy before drafting your Insurance Cancellation Letter to determine what exactly is expected of you. When drafting it, keep your letter professional, detailed, and to the point. Provide the reader with enough information to locate and cancel your policy.