Cancel policy

[Sugarspeedway]

Jurisdiction

Michigan

Liberty Mutual will not let me cancel my car insurance unless I sell the car, prove it is not registered or donate it. I just want to change insurance companies.

 

[zddoodah]

Once you secure new insurance and provide your current insurer with evidence you have done so, your current insurer will cancel your policy.

 

[army judge]

Liberty Mutual will not let me cancel my car insurance unless I sell the car, prove it is not registered or donate it. I just want to change insurance companies.

Do the Michigan car insurance cancellation laws allow a driver to cancel coverage?
Yes according to Michigan law a car insurance policy "may be canceled at any time at the request of the insured." When that occurs, the auto insurance company must "refund the excess of paid premium." Michigan Legislature - Section 500.3020
(MCL 500.3020(1)(a))

Can you cancel car insurance at any time?
Yes. The Michigan car insurance cancellation laws allow you – as the named insured on a policy – to cancel at any time.

Can a car insurance company cancel your policy?
Yes. A car insurance policy "may be canceled at any time by the insurer," but only if the insurance company mails to the insured "a not less than 10 days' written notice of cancellation." (MCL 500.3020(1)(b)) Michigan Legislature - Section 500.3020

The car insurance company may include the "excess of paid premium" along with the notice of cancellation, but it is not required to.

What happens if car insurance is cancelled?
If your policy is cancelled – and it is done in compliance with the Michigan car insurance cancellation laws – then you will no longer have any coverage under the policy. You will be entitled to a refund of any prepaid premiums for what would have been the balance of the policy term.

Do you get a refund when you cancel car insurance?
Yes. The auto insurance company must refund you the "the excess of paid premium" when you cancel your auto insurance. (MCL 500.3020(1)(a) and (b)) Michigan Legislature - Section 500.3020

What happens if a company does not follow the Michigan car insurance cancellation laws?
If the laws are not followed, then a canceled policy will not be effective and coverage under the policy will continue until the end of the policy term or until a policy a properly, lawfully canceled.

What are the Michigan car insurance cancellation laws for nonpayment of premiums?
In Michigan a company can cancel your No-Fault policy if you do not pay the premiums on your policy. But cancellation for nonpayment is effective only if: (1) your insurer provides the legally-required 10-day written notice of cancellation; and (2) the notice is mailed after nonpayment has occurred.

MICHIGAN CAR INSURANCE CANCELLATION LAWS UPDATE: The Michigan Supreme Court ruled unanimously in Yang v. Everest National Insurance Company that MCL 500.3020(1)(b) of the Insurance Code does not allow an auto insurance company to cancel a driver's policy for non-payment of premiums by mailing "its customer a letter purporting to be a notice of cancellation for nonpayment of insurance premiums before any nonpayment actually occurred." The justices added: "We hold that under MCL 500.3020(1)(b), a cancellation notice is effective only if it is peremptory, explicit, and unconditional. In this case, because Everest's letter provided that cancellation was conditioned on Yang's failure to pay his insurance premiums, the letter was ineffective as a notice of cancellation."

Can I cancel my car insurance if I pay monthly?
The Michigan car insurance cancellation laws allow a driver to cancel his or her policy "at any time." (MCL 500.3020(1)(a))

Can I cancel my car insurance before it starts?
Although it is hard to imagine the circumstances that would prompt a driver to cancel his or her policy before it starts, the Michigan car insurance cancellation laws allow a driver to cancel his or her policy "at any time." (MCL 500.3020(1)(a))

Do I have to pay to cancel car insurance?
No. You do not have to pay to cancel your car insurance.

Can you cancel car insurance on a financed car?
The Michigan car insurance cancellation laws do not address this issue. But the terms of your finance agreement most likely will require you to maintain continual No-Fault auto insurance coverage on your vehicle. Cancelling your insurance without having a new policy in place may violate your finance agreement.

Is it bad to cancel car insurance?
There is nothing in the Michigan car insurance cancellation laws that allows a company to penalize a driver for cancelling his or her policy or to refuse to insure such a driver. But if you plan to continue driving, do not cancel your car insurance without first getting a new policy in place.

Can I cancel car insurance after renewal?
You can cancel your policy after renewal because the Michigan car insurance cancellation laws allow you to cancel your policy "at any time." (MCL 500.3020(1)(a))

Cancellation and renewal of liability auto insurance
If your auto insurance company refuses to renew your "automobile liability insurance," it does not constitute "a cancellation" unless the insurance company mails you notice "20 days prior to the termination date of the policy" that "the policy will not be renewed." (MCL 500.3204(2))

Appealing a car insurance cancellation
According to the Michigan car insurance cancellation laws, if your auto insurance liability policy was cancelled within 55 days of it being issued, then you cannot appeal the cancellation to the Insurance Commissioner. (MCL 500.3224(1)) Otherwise, you can "contest the grounds of [your] cancellation" by filing a written request with the Insurance Commissioner.

Your appeal must be filed "within 7 days after the date of the postmark" on the notice of cancellation that was mailed to you. (MCL 500.3230)

Michigan Car Insurance Cancellation Laws Explained

 

[Zigner]

Whatchya want to bet that the OP isn't sharing crucial details...

 

[army judge]

Whatchya want to bet that the OP isn't sharing crucial details...

An SR-22 in Michigan is proof of future financial responsibility that high-risk drivers must carry to reinstate their driving privileges after a license suspension or revocation.

Although it is often called "SR-22 insurance," it's not really an insurance policy—it's a certificate that your insurer files with the state to certify that you carry the minimum required liability insurance.

QUICK LOOK

In Michigan, an SR-22 is a certificate that high-risk drivers must have in order to regain their driving privileges after their license has been suspended or revoked. It indicates that you've purchased coverage that complies with the minimum liability and personal injury protection (PIP) coverage required by Michigan law.

Your car insurance company issues an SR-22 for serious traffic offenses or alcohol/drug-related driving issues. It's submitted to the state after purchasing at least a minimum-coverage auto insurance policy.

The cost of getting an SR-22 is between $15 and $25, but the main expense of a bad driving record is higher car insurance rates.



There are only two reasons you should want to cancel or remove an SR22 filing from your auto insurance: switching insurance companies or completed required SR22 probation period. I say these are the only two reasons because if you remove the SR22 prior to the end of your required period your license will be suspended again.

Switching Insurance Companies
Let's start with those who are planning to switch insurance companies because they have found a lower rate or they just don't like the company. This is common since most drivers will be required to carry the SR-22 for three years it is likely lower rates are available during this time at another company. Here is a checklist of how to go about switching auto insurance while you have SR22 filed:

Get SR22 Insurance Quotes - Before switching companies compare rates from leading companies in your state. Each insurance company has different rates so you may be able to save 25% or more.
Start New SR22 Policy - Prior to canceling the old policy make sure you have the new one in force and the SR22 is filed with the state. It can take a few days for the state to receive this information.
Cancel Old SR22 Policy - Once you get confirmation from the new insurance company that the policy is in force and the SR-22 has been filed you can cancel the old policy. To ensure that there is no lapse in coverage I would recommend cancelling the old policy 2-3 days after the new one is in force. This will allow time for the new filing to update at the state motor vehicle department.

Required SR22 Period Completed
Now let's discuss removing an SR22 filing from your auto insurance policy once the three year probation period is complete. Depending on your court decision you may be required to maintain an SR-22 for 3-5 years so check with your court documents.

Some states will send a notice that your SR22 filing period is complete but most states don't so the only way to know is by referencing the original court paperwork. Here is a checklist of how to remove an SR22 from your auto insurance:

Reference Court Documents - These court documents would be available to you after the hearing and will detail each step needed to reinstate your license. In this paperwork is how long you will be required to maintain an SR22 form.
Call State Department of Motor Vehicles - Prior to making any changes on your SR22 insurance policy you should call the DMV to confirm you are eligible to remove the SR-22 filing.
Call Insurance Company to Remove SR22 - After you have confirmed with your court documents and with the state then the only step left is to call the insurance company and inform them that the SR22 is no longer needed. The insurance company will remove the filing from your auto insurance at this time.

How to Remove or Cancel SR22 Filing Without Being Penalized