Car Insurance Will I be penalized for canceling car insurance if I haven’t made any claims? Canceling your car insurance without any claims made will not result in direct penalties. By Insure.com's Editor | Updated on August 18, 2023 The page is part of the topic how to cancel car insurance Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. If you haven’t made any claims, you may not face direct penalties for canceling your car insurance. However, there are essential points to consider before making the decision. Understanding the impact Canceling your car insurance can have an impact on the following: No-claims bonus (NCB) – Canceling your policy might lead to a loss of any accumulated NCB. This could result in higher premiums when you get new coverage later. Future rates – A gap in coverage caused by cancellation might lead to higher rates in the future, even with a clean claims history. Lapse in coverage – If you cancel without securing new insurance, you risk being uninsured, leaving you financially vulnerable in case of an accident or theft. Best practices Policy transfer – If changing insurers or getting a new vehicle, explore transferring your policy to maintain your NCB. Policy suspension – If your car won’t be in use for an extended period, consider suspending your policy to keep your coverage and NCB intact. Plan ahead – Think about your future insurance needs before canceling, and assess if it aligns with your long-term goals. Conclusion Canceling car insurance without claims may not result in immediate penalties, but it can affect your NCB and future rates. Explore alternatives like policy transfer or suspension, and plan ahead to make informed decisions about your insurance coverage. Always consult with your insurer to understand specific policies and options available to you. In case you missed it Best Car Insurance Companies of 2023 Car insurance rates by state: The most expensive and cheapest states for car ins... What is Full Coverage Car Insurance? A complete guide to car insurance costs for seniors A complete guide to adding a teenager to your car insurance policy What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Buying and insuring a used car: Most and least expensive models to insure in 202... The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to Car Insurance Discounts Proper insurance coverage for college-bound children How to read (and actually understand!) your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 Get instant quotes now ! Please enter valid zip Get Quotes