How do you cancel policy with state farm?

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The question does not state the nature of the coverage that you have, but it really does not matter. A policy may be canceled by the insured in a couple of ways:

(1) Do not pay the current premium, or if you have, do not pay the next one.

(2) Contact your State Farm insurance agent and tell him/her or a customer service representative in the office of your desire to cancel.

(3) If the premium was being electronically debited from a bank account, rescind the authority to do that.

In all events, do not cancel the insurance until and unless you have replaced it with substitute coverage and you have confirmation that the new coverage is in place. If the State Farm insurance is homeowner's, keep in mind that any mortgage holder will be an additional insured on the policy and will be notified of the cancellation. You will likely have an obligation under the mortgage to keep the home insured, so it is important that you replace the State Farm coverage and name the mortgage holder on the policy. Otherwise, you will be in violation of the terms of the policy and the mortgage holder may take it upon itself to secure insurance to protect its own interests. That type of insurance is typically high and will be charged to your loan account.

If the State Farm insurance is car insurance, likewise make sure that it is replaced before you cancel. Most states have requirements that various types and limits of motor vehicle insurance be maintained, and you do not want to be in violation of those requirements.

Additionally, if the car is financed, the lender will have required physical damage coverage on the car to protect its interest. If you cancel it, the lender will get its own coverage to protect its interest in the collateral and charge the premium to the loan account. That insurance does not inure to your benefit, and protects only the lender's interest in the collateral.
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