If you are looking to cancel your current insurance and switch (or cancel your insurance for other reasons) you may want to find out whether or not the company has a cancellation fee. Geico is one of the most popular insurance companies around. So you may be asking, what is the Geico cancellation fee?
Geico does not charge a cancellation fee.
About Geico Insurance
Car insurance is one of the most important insurances you will purchase. Most states require that you have liability coverage at the very least and, in some cases, your insurance may save you from a lawsuit if you get into a car accident. Choosing which company you want to carry insurance with can be a difficult decision.
As far as cost goes Geico is one of the more pricey options when it comes to insurance. However, it is the nation’s second largest insurance provider and it has been in business since 1936. The company’s assets sit at $28 billion and continues to be highly rated by consumers.
When a Geico customer has an issue it is generally resolved quickly, according to reviews of the company’s customer service department. What about when it comes to cancelling your Geico insurance.
Geico Cancellation Policies
Some companies charge a cancellation fee when a customer decides to end insurance coverage. Others may charge you a pro-rated fee if you cancel in the middle of your insurance term. For example, if you cancel your car insurance three months into your six-month coverage the company may charge you for the remaining three months. Geico, however, does not charge a cancellation fee.
You may actually receive money back when you cancel with Geico. Some insurance companies require that you prepay your insurance policy. If you prepay your insurance policy with Geico and decide to cancel you will not be charged a cancellation fee. Instead you will receive the money you prepaid for the insurance back. When you cancel your coverage the agent assisting you can let you know how much of a refund (if any) you will receive.
One thing to keep in mind is that you may owe money before you are able to cancel. If you have fallen behind in payments or added a new vehicle to your policy recently you may have to pay those off prior to being able to cancel. However, you will not be charged a specific fee for the cancellation of your insurance coverage.
How to Cancel Your Geico Policy
With Geico you can call and cancel your policy in one of two ways. You can make the cancellation date a day in the future or you can cancel your policy effective immediately. Some companies require you to cancel in writing while others provide online cancellation services. You must call to cancel your policy with Geico. Don’t try to cancel your Geico policy by sending an email, going to a local agent or having someone else call and cancel your policy. None of these will effectively cancel your policy. You can reach their 24-hour customer service department at (800) 861-8380.
Have you had to cancel your insurance? Was there a fee?
Photo: Flickr: Mike Mozart
The fees are pro rated depending on the agreements of both parties.
Yet another reason why Geico is a superior insurance company. They don’t jack you with fees on the way out.
Cancelation fees are state specific, it is not that GEICO is doing you a favor not charging.
They have to be either filed and approved or not. In North Carolina there is a fee commonly charged called a “short- rate” which is a state requirement, but even the amount and whether it is charged can vary greatly depending upon the situation.
GEICO does charge a cancellation fee.
Just for the record, I live in North Carolina, Geico just informed me that they will charge me a cancellation fee. I informed them if they do, I will never ever use them for any type of insurance. My state gives them the option to charge a cancellation fee. A_sholes!
Let’s face it–the insurance company is big business! Insurance was created by the meritime industry during a time when their only choice was to transport goods by boat. Conditions in the sea, pirates, and unforseen disasters happened frequently. Still, the cost to insure their goods from total loss was low. The fees collected were pooled together and used accordingly. The idea of it being a profitable business did not exist until much later. Today, the cost of insurance varies from person2person. A 50 yrs old, whom has never filed a claim or been in an accident will pay as much as the next person. If this were a savings account I would be rich!